December 4, 2020

Fed President Who Resisted Its Rate Policy Is Retiring

Mr. Hoenig, who has headed the Fed’s Kansas City regional bank since 1991, has opposed the Fed’s efforts to stimulate the economy through an extended period of low interest rates and the purchase of billions of dollars in Treasury securities.

He dissented against those policies at all eight Fed meetings last year. He argued that the Fed’s efforts to spur growth could kindle future inflation.

His departure had been expected because he will reach the mandatory retirement age for Fed bank presidents of 65 in September.

Mr. Hoenig was not joined in his opposition to the policies by other members of the Federal Open Market Committee, the panel of Fed board members and regional bank presidents who set monetary policy. This year, there have been no dissents. Mr. Hoenig does not have a vote on the F.O.M.C. this year.

Mr. Hoenig first joined the Kansas City Fed in 1973 as an economist in bank supervision and his time in that division included the banking crisis of the 1980s. He was involved with regulatory actions on nearly 350 banks that either failed or needed government assistance.

The Kansas City Fed has formed a search committee to select Mr. Hoenig’s successor. The successful candidate will need the approval of the directors who serve on the Kansas City Fed’s board. The search committee will be led by Terry Moore, president of the Omaha Federation of Labor, A.F.L.-C.I.O., who is also a member of the regional bank’s board.

Article source: http://feeds.nytimes.com/click.phdo?i=f12461f0dc3038990f9255d21a3c373e

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