Hoenig Says Fed Must Raise Rates to Create a ‘Stable Economy’

Federal Reserve Bank of Kansas City President Thomas Hoenig said the central bank needs to increase interest rates to foster a more solid U.S. economy.

“I believe that moving rates modestly off of zero, where they have been since December 2008, still represents highly accommodative monetary policy,” Hoenig said today in the text of remarks at a real estate conference in New Orleans. “More importantly, such action is necessary if we are to ensure a more stable economy that can thereby foster a more sustainable housing market.”