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WASHINGTON — The Federal Reserve’s current accommodative monetary policy stance remains appropriate, Kansas City Fed President Thomas Hoenig will tell lawmakers today, though the central bank should move away from keeping interest rates at zero.
Hoenig, in prepared remarks for a hearing before a House subcommittee, said he had “several concerns with zero rates.” Though he supported the Fed’s move to cut the federal funds target rate to zero to 0.25 percent during the financial crisis, Hoenig said he now worries about the potential effects of artificially low rates.
