No Interest in Saving

A fellow was in a bad mood,
And feeling financially screwed,
When he read in his statement
How lowly his rate went
That int'rest had barely accrued.

As the US attempts to pull out of a financial hole brought on by over-leveraging, it seems that no-one is looking out for the interests of US savers; no-one, that is, but Kansas City Federal Reserve Bank President Thomas Hoenig.   Mr. Hoenig, who does not have a vote on monetary policy this year, urges the Fed to sweeten the pot for savers by raising interest rates from near zero.

Stop Blowing Bubbles

Thomas Hoenig, the hawkish Fed governor,
Says: "The Dollar has way too much dove in 'er;
With a null target rate,
I doubt we'll deflate,
But inflation is bound to be stubborner."  

Retiring Kansas City Federal Reserve Bank President Thomas Hoenig summed up his argument for tighter money in a speech at the London School of Economics yesterday.  In what may be his valedictory address, Hoenig stressed the urgent need for a transition from short-term liquidity crisis management to longer-term inflation-fighting.  As he pointed out, the Fed's overly accomodative policy in 2003 set the stage for the asset bubble that crashed five years later.  Hoenig also added his voice to those blaming "QE2" for the recent round of commodity inflation, though without really making the case for it.

Mr. Hoenig's FOMC Dissent

"I've said at each meeting I've been to,
We should hike rates to one point and then two;
If recession resumes
Now there's no wiggle room
In this corner you've painted us into."