Former Fed Official Warns Money Printing Will Likely Kick Into High Gear Soon | Thomas Hoenig

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Dec 2, 2025

Thomas Hoenig, former CEO of the Kansas City Fed and current Distinguished Senior Fellow at the Mercatus Center, shares his insights on upcoming Federal Reserve decisions. He discusses the likelihood of interest rate cuts, the challenges of inflation, and the importance of price stability. Hoenig raises concerns about how low rates exacerbate wealth inequality and critiques the Fed's 2% inflation target. He highlights potential pressures on Fed independence and reflects on historical political influences, suggesting necessary reforms for fiscal responsibility.

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ADVICE

Avoid Premature Rate Cuts

Thomas Hoenig thinks a December cut is >50% likely but believes the Fed should avoid cutting now.
He urges focusing on bringing inflation down rather than easing policy to appease political pressure.

INSIGHT

Modernize Economic Data Sources

Hoenig supports modernizing government economic data while keeping impartial public sources.
He recommends using private realtime measures like ADP side-by-side with BLS to improve policy decisions.

INSIGHT

Three Percent Is Still Too High

Hoenig stresses 3% inflation remains materially harmful and is not near price stability.
He warns sustained 3% erodes real incomes and harms those without asset wealth over years.

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Will the Federal Reserve cut interest rates when it meets again in two weeks?Wall Street has been whipsawing the odds back & forth over the past few weeks.To address that question, plus the even larger one of who is likely to replace Fed Chair Jerome Powell when his tenure ends in the Spring, we're fortunate to welcome back to the program Dr Thomas Hoenig, former CEO of the Kansas City Fed, former voting member of the Federal Open Market Committee, a former director of the FDIC, and now a Distinguished Senior Fellow at the Mercatus Center.Follow Dr Hoenig at https://www.finregrag.com/ and https://www.mercatus.org/

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