“Legitimate reasons” exist to be cautious about quantitative easing and the Fed should consider the costs and benefits before undertaking the task, Federal Reserve Bank of Kansas City president Thomas M. Hoenig said Tuesday.

“Based on recent research and the earlier program of purchasing long-term securities — known as LSAP — I think the benefits are likely to be smaller than the costs,” Hoenig told the National Association of Business Economists’ annual meeting, according to prepared text released by the Fed.

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