JACKSON HOLE, Wyo. — Federal Reserve Bank of Kansas City president Thomas Hoenig expressed economic optimism Saturday, but said action is needed to deal with record budget deficits.

"We're confident we will slog our way out of this recession," Hoenig said at the close of his bank's annual symposium. "We need to be looking ahead."

As the Fed strives to "reestablish our monetary policy framework," fiscal policy will loom important, he said.

"Because of its implications for monetary policy, that's critical now," Hoenig said. "There is a need and desire to take that on now."

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