Fed's Hoenig says lags slowing rate impact

Kansas City Federal Reserve Bank President Thomas Hoenig said on Wednesday 27 September that the impact of previous interest rate increases has not been fully felt yet and must be considered by the FOMC at future meetings.

Speaking to a forum sponsored by the Kansas City Fed, Hoenig said central bank policy-makers have to weigh whether declines in energy prices will be sustained and how steep the housing-sector decline may become.

"If we take an action, if we say inflation is at 2.8 (percent) a