Fed's Hoenig Says Chance Of Recession is Elevated, But...August 25, 2011 @ 2:57 PM EST
Fed Update: Hoening Says Chance of Recession is Elevated
In an interview on CNBC, Kansas City Fed President Thomas Hoenig says that the chance of a recession in the U.S. is elevated, but currently is about 20%.
Hoenig attributes the increased potential for a recession due to reduced confidence. He also pointed out that the recent surveys such as the Philly Fed were done during the height of the market volatility and thus, it makes sense to wait for more data.
Hoenig also explained that he was not happy with the “extended period” language in the recent FOMC statements nor the commitment to keep rates low through mid-2013.
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