2010.11.0508:41:00UTC+00Rates Should be Off Zero, for Stable Economy : fED s Hoenig

News:

• Kansas City Federal Reserve President Thomas Hoenig today said that the Fed should increase the market rates above zero modestly for a sustainable economy.
• He added that housing markets cannot follow a sustainable path until the Fed normalizes monetary policy.
• Hoeing said that he does not backs Fed decision of more Qe in the economy as it would move th economy to risks of inflation and fuel the future boom and bust cycle.
• He added that the  mortgage finance agencies Fannie Mae and Freddie Mac, could not be allowed to operate in the future as they had in the past. 

Quotes:

• "I support a policy path that returns the housing industry toward greater market discipline and greater long-run stability. This path requires a greatly reduced role for governmental intervention and public subsidies that have distorted the market over recent decades." Kansas City Federal Reserve President Thomas Hoenig.