Thoughtful Money with Adam Taggart The Surest Bet Is The Continued Debasement Of Our Money | Tom Hoenig, Former FOMC Member
May 13, 2026
Thomas Hoenig, former Kansas City Fed CEO and FOMC voter, warns on continued debasement of fiat money. He discusses Fed balance-sheet expansion and QE risks. He covers wartime pressures on monetary policy, stagflation risks from energy shocks, and the case for real assets and tighter rules to limit discretionary money printing.
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Asset Owners And AI CapEx Are Sustaining Demand
- The economy shows resilience driven by asset holders and large CapEx, likely producing an inflationary boom through the election year.
- Hoenig expects AI-driven CapEx and tax cuts to sustain demand despite K-shaped inequality.
Gradual Tightening Beats Late Aggressive Hikes
- Hoenig expects the Fed will likely need to raise rates later this year or next if inflation persists, though politics may delay action.
- He warns gradual increases and balance-sheet slowdown are less painful than late aggressive hikes.
Dollar Purchasing Power Will Likely Continue Falling
- Hoenig is confident the purchasing power of the U.S. dollar will continue declining absent strict rules or a backing.
- He cites accelerated dollar decline since leaving the gold-exchange standard and rising gold and housing prices as evidence.