Fed’s Hoenig: Low rate discourage savings, cause imbalances

Outgoing KC Fed president Tom Hoenig wants to avoid the mistakes of the mid-2000s when rates were held too-low for too long…

“We have to think forward from here. And that is, what is the consequence of an extended period of zero interest rates for future years?” Mr. Hoenig said on CNN’s Fareed Zakaria GPS. Mr. Hoenig cited inflation, but “imbalances in the economy” as problems that could arise from continuing low rates.