Hoenig says Fed aiming for neutral rates

The Federal Reserve should raise interest rates toward a neutral level of 3.5 to 4.5 per cent and get there "sooner rather than later" in the face of strong growth, a top Fed official said on Thursday 16 June.

Kansas City Federal Reserve President Thomas Hoenig used the concept of a neutral rate of interest to illustrate how future policy may unfold.

"Most judge it (neutral) to be somewhere between 3-1/2 per cent and 4-1/2 per cent," Hoenig said, referring to a level of interest rates that

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