Preferring to move too soon rather than too late, Federal Reserve Bank of Kansas City president Thomas M. Hoenig yesterday suggested the Federal Open Market Committee "initiate sometime soon" a move toward a 1% federal funds rate target, with added rate hikes dependent on "how economic and financial conditions develop."

"I would view a move to 1% as simply a continuation of our strategy to remove measures that were originally implemented in response to the intensification of the financial crisis that erupted in the fall of 2008," he told an audience in New Mexico, according to prepared text of the speech released by the Fed.

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