Below is a must-watch Bloomberg interview with Kansas City Fed president Thomas Hoenig on U.S. monetary policy outlook and the economy. He’s retiring next month and has been a lone dissenter on most post-crisis Fed policies. Below video is a summary from Mike “Mish” Shedlock, and a link to his full analysis. Good interview with [...]
Posts Tagged ‘Thomas Hoenig’
Final Words From Thomas Hoenig, Lifetime Fed Dissenter
I’ve cooled to NYT’s Gretchen Morgenson over the years because she’s taken the easy populist path of evil institutions out to destroy consumers. That theme attracts readers but she’s not on the ground at the financial, mortgage and real estate advisor levels so she’s unaware that there are armies of advisors out there who see [...]
Thomas Hoenig To Retire. Will Richard Fisher Step Up As Fed’s Low-Rate Dissenter?
Dallas Fed president was out in force last week with anti-inflation warnings, first during an interview with Reuters, then during a speech in Brussels. Yet throughout the crisis recovery period, he’s used his position on the FOMC to vote for near-zero overnight rates and to press forward with two rounds (and more than $2 trillion [...]
No Fed rate or QE2 change. Rate advice for consumers.
Today’s Fed statement acknowledges economic recovery is on “firmer footing,” and while the Fed acknowledges inflationary concerns, it’s choosing to ignore inflation pressure for now and keeping overnight bank-to-bank target Fed Funds Rates at 0-.25%, and keeping the overnight Fed-to-bank Discount Rates at .75%. They also said they’d keep going with their second round of [...]
Fed’s Hoenig Is Right That Rates Are Too Low, But Nobody’s Listening. Except FoxNews.
In the classic movie Big, Tom Hanks, a boy trapped in a man’s body, watches 40-something toy company executives pitch a new toy and responds with a simple boyish dissent: “I don’t get it.” This direct approach breathes new life into a staid environment, reinvents the toy, and the company goes gangbusters. It’s not quite [...]
Fed: Economy and Jobs Picture Still Unstable. No change to QE2 or overnight rates.
Below is the statement from the first Fed rate policy of 2011, which shows their view that the economic recovery and jobs situation is still unstable. They left overnight bank to bank lending rates the same at a 0-.25% target, and also said they’d continue their $600b quantitative easing program designed to lower business rates [...]
Why Rates Racing Higher After Fed’s Final “Low-Rate” Decision of 2010
Following the last Fed policy statement of 2010 (below), rates continue higher—30yr fixed 5% today vs. 4% on October 8—as mortgage and Treasury bond prices continue to trade lower on the 4 rate themes of recent weeks. The Fed noted that “the economic recovery is continuing” and that they’d continue the $600b+ Treasury buying (QE2) [...]
WeeklyBasis 9/18/10: Big FHA Loan Cost Increase Oct 4, Advice For Refinancers
Rates ended last week even vs. previous week. Record low rates are holding as we head into the September 20 week. Rates and fine-print below. Also below are three topics: (1) Fed meeting and home sales preview, (2) critical alert on FHA loan cost increases, and (3) advice for refinancers. Rate Factors Week of September [...]
WeeklyBasis 8/28/10: Is Economy Weak Enough For Rates To Go Even Lower?
Jumpy Rate Market Response To GDP & Home Sales Reports Rates dropped 0.2% early last week then rose Friday to end the week even. The $109b in Treasury auctions throughout last week caused mortgage bonds to sell off slightly, and July’s record low New Home Sales (down 32.4% year-over-year) and Existing Home Sales (down 25.5% [...]
FOMC Voting Member Thomas Hoenig’s Rationale For Higher Rates
Thomas Hoenig is a voting FOMC member who’s voted against keeping rates low at every Fed meeting in 2010. He gave a speech today providing his rationale for why he thinks U.S. monetary policy is too accommodative. The full speech is below—fairly dismal but all good points. His basic premise is that using loose monetary [...]
