Hoenig says recovery is modest, meeting should provide longer-term ideas

Hoenig said the central bank needs to be discussing the next decade during the meeting “so that we get it right and we look at some of the long-term issues.”

The meeting of central bank leaders is expected to have a broad range of discussions and come to a clearer idea for global economic development. 

“We’ve invited different views, different opinions. And the whole idea is to get a discussion and then maybe some consensus out of that as far as the future goes,” he said. 

“One of the outcomes of Jackson over the years is that we’ve always focused on meaningful issues, longer-term policy issues, whether it was price stability or financial crisis, and done it in a context which was not threatening, but invited different opinions. And we’ve actually gotten some pretty good thoughts generated out of that in terms of our proceedings, in terms of the coverage. And I think the world appreciates that.”

Hoenig has been an outspoken critic on some of the Fed’s policy issues, including holding the interest rate near zero for an extended period of time. He has pushed for the Fed to gradually raise the interest rate to stoke the nation’s economic recovery. 

Regardless of criticism aimed at the Fed, Hoenig said the central bank has been clear in its guidance. 

“I think that we do a very good job,” he said. “I encourage you to read these speeches. I think people are very forthright. I don’t think anyone, if you read them carefully, can suggest otherwise.”

The Dow Jones Industrials were up about 119 points Friday morning but Hoenig emphasized that the conference isn’t for the markets, and suggested they “be more measured in the sense that we’re not here for them.”

“I’m sorry, we’re not. We’re here for the broader public, the broader policy context for discussions. And so the market has to take what it will, but I’m not here to provide them anything. I’m here to provide a broader context, a wider discussion and, hopefully, better long-term solutions.”