Fed's Hoenig says inflation is rising modestly (by Greg Robb)
WASHINGTON (MarketWatch) - Data over the past two months show that inflation is on the march, said Thomas Hoenig, the president of the Kansas City Fed on Thursday. There are "indications that inflation is rising -- slowly, modestly but still rising," Hoenig said in an interview on the Fox Business Network. Hoenig also said the economy was now on a sustainable growth path. Hoenig voted against the Fed's latest $600 billion bond buying program, arguing that it might foster imbalances like the recent housing bubble. Hoenig suggested rapidly rising prices of farm land might be a new imbalance resulting from easy Fed policy. Hoenig said he would argue against any Fed decision to launch another round of asset purchases. "We have been in a recovery now for over a year and a half and I think we need to keep that in mind as we look ahead," Hoenig said.