KC Fed president Hoenig says that if the Fed does not remove liquidity in four-to-five years, than there will be serious problems ahead. The inflation worry-warts think prices will begin to soar by next Tuesday, so perhaps these comments will put things into perspective for them.
Moral: don’t fight the Fed.
The dollar trades a bit firmer in aimless afternoon trade after a late rally in Sterling dragged it lower around midday.
