Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Fed's Hoenig to retire in October

thomas_hoenig.top.jpg By Annalyn Censky, staff reporter


NEW YORK (CNNMoney) -- Time is almost up for one of the Federal Reserve's most candid inflation hawks. Kansas City Fed President Thomas Hoenig is retiring October 1.

While retirement was imminent because of Hoenig's age, the Fed officially announced his departure Friday morning. Fed presidents are subject to mandatory retirement once they reach 65 years old.

Famous Fed flubs
Bernanke and Greenspan aren't the only ones to have put their foot in their mouth over the years. Here's a look at Federal Reserve "oops" moments.

The regional bank has formed a committee to select Hoenig's successor.

Hoenig is known for being the Fed's lone dissenter last year, after he opposed the Fed's historically low interest rates at all eight Federal Open Market Committee meetings in 2010.

He has recently opposed the Fed's controversial policy of stimulating the economy through $600 billion in Treasury purchases, known as quantitative easing, and called for a hike in interest rates.

In his outspokenness, Hoenig has often invoked the Fed's famous "punch bowl" line, referring to a need to raise interest rates as the economy improves and before inflation and asset bubbles take hold.

"I really want to take away the punch bowl before the room gets drunk, because this punch is -- I think -- a little bit spiked," Hoenig said at the Council on Foreign Relations earlier this month.

Hoenig joined the Kansas City Fed as an economist in 1973. He was promoted to vice president in 1986 and president in 1991. To top of page

Index Last Change % Change
Dow 18,473.75 -19.31 -0.10%
Nasdaq 5,110.05 12.42 0.24%
S&P 500 2,169.18 0.70 0.03%
Treasuries 1.56 -0.01 -0.51%
Data as of 4:28pm ET
Company Price Change % Change
Freeport-McMoRan Inc... 12.68 0.30 2.42%
Bank of America Corp... 14.53 0.16 1.11%
Gilead Sciences Inc 81.05 -7.50 -8.47%
Chesapeake Energy Co... 5.35 0.21 4.09%
Apple Inc 96.67 -0.67 -0.69%
Data as of 4:02pm ET
Sponsors

Sections

HSBC banker arrested at JFK airport as he prepared to leave the country. He and former trader face federal charges they manipulated currency trades. More

Bernie Sanders takes credit for forcing for forcing Hillary Clinton and the entire Democratic Party to get a lot tougher on Wall Street. But how likely is that to happen? More

The vast majority money stolen by hackers in "business email compromise" scams goes to banks in China and Hong Kong, according to the FBI. More

Only 3% of employers offer so-called "vacation stipends" that help pay for their employees' vacations. But those that do make taking time off a must. More