JACKSON HOLE, Wyo. - Kansas City Federal Reserve Bank President Thomas Hoenig Saturday expressed optimism on the economy, but said action is needed to deal with record budget deficits.
At the close of his Bank's annual symposium, Hoenig said the topic of this year's conference "Macroeconomic Challenges In the Decade Ahead" was "really designed as a sense of optimism for the future."
"It reflects the fact that we're confident we will slog our way out of this recession," he continued. So "we need to be looking ahead."
Hoenig added that as the Fed strives to "reestablish our monetary policy framework going forward," fiscal policy will loom as increasingly important, and "there is a need and desire to take that on now."
"Because of its implications for monetary policy, that's critical now," he said as he adjourned the conference.
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