Fed must focus on inflation says Hoenig

Kansas City Fed president Thomas Hoenig said on Monday 26 September that the damage to the US economy caused by hurricanes Katrina and Rita can be shaken off and the Fed must focus on keeping inflation at bay to maintain stable growth.

"I believe it is also important for the Federal Reserve to stay focused on its primary mission for maintaining a neutral monetary policy that is both able to contain inflationary pressures and still-balanced growth," he told a Kansas City Fed economic forum.

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