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"A very long but very interesting article about the Federal Reserve's monetary policies as seen through the eyes of Tom Hoeing, former KC Fed president."
Our favorite passage that's tragically apropos . . .
He retired from the Fed in late 2011, and after that, a reputation hardened around Hoenig as the man who got it wrong. He is remembered as something like a cranky Old Testament prophet who warned incessantly, and incorrectly, about one thing: the threat of coming inflation.
But this version of history isn’t true. While Hoenig was concerned about inflation, that isn’t what solely what drove him to lodge his string of dissents. The historical record shows that Hoenig was worried primarily that the Fed was taking a risky path that would deepen income inequality, stoke dangerous asset bubbles and enrich the biggest banks over everyone else. He also warned that it would suck the Fed into a money-printing quagmire that the central bank would not be able to escape without destabilizing the entire financial system.
Read more via www.TonysKansasCity.com news link . . .
Hoenig's dissents are striking because the Fed's top policy committee - called the Federal Open Market Committee, or FOMC - doesn't just prize consensus; it nearly demands it. The committee likes to present a unified front to the public because it is arguably the most powerful governing body in American economic affairs.