The Falcon of the Federal Reserve Warned that Interest Rates Should be Higher
3 Mar
Thomas Hoenig, president of the Federal Reserve in Kansas and one of the most pro-increase of interest rates in the Federal Reserve, launched a warning to the market when stating that a long period with ultra low interest rates invites to the speculation and is dangerous. The price of money in the Unites States is between 0% and 0,25% since December of 2008.
“When your interest rate is permanently at 0, you are inviting future problems. We know that the 0 isn’t sustainable…the market knows it”, stated Hoenig.
Furthermore, the regional president of the Federal Reserve, stated that the Central Bank of the United States must be ready to increase interest rates although having high unemployment rates.
Hoenig has been positioned as of the the falcons in the Federal Reserve. He appeared in the act of the last meeting of the Federal Reserve, released on February 17th ; asking for a important change on the Federal Reserve’s official message: instead of saying that the interest rates will be low “during a long period of time” say “at the moment”.




