Hoenig announces October retirement from Fed

AP News
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Posted: Mar 25, 2011 4:42 PM
Hoenig announces October retirement from Fed

Thomas M. Hoenig, the longest serving of the Federal Reserve's 12 regional bank presidents, announced on Friday that he will retire on Oct. 1.

Hoenig, who had headed the Fed's Kansas City regional bank since 1991, has opposed the Fed's efforts to boost 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.

Hoenig was not joined in his opposition to the Feb 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. Hoenig does not have a vote on the FOMC this year.

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 Hoenig's successor. The successful candidate will need the approval of the directors who serve on the Kansas City Fed's board.