Getting your player ready...
Federal Reserve Bank of Kansas City president Thomas Hoenig, the U.S. central bank’s longest-serving policymaker, urged the Fed on Tuesday to raise its target short-term interest rate to 1 percent over the next year and to shrink its record balance sheet to prevent inflation and asset-price bubbles.
“Zero is not the right rate — that much I am pretty confident of,” Hoenig said in Steamboat Springs. “We have to begin the process of rationalizing our credit system” by tightening policy “so we don’t build and facilitate the building of imbalances and long-term risk of inflationary problems.”
