Growth impact from oil 'modest' says Fed's Hoenig

Record oil prices will only have a moderate impact on U.S. growth which looks set for a solid performance over the next 18 months, Federal Reserve Bank of Kansas City President Thomas Hoenig said on Wednesday 6 October.

"The impact will be modest because the economy is sound. We are in an expansion phase on the business side," Hoenig told an economic forum in Nebraska.

Forecasting 3.5 to 4 percent GDP growth for the rest of this year and 2005, Hoenig said his outlook would survive the energy sh