Fed's Hoenig-zero rate pledge invites speculation

WASHINGTON, March 2 (Reuters) - A senior U.S. Federal Reserve official said on Tuesday that an extended period of ultra-low rates invites speculative behavior and is risky.

"When you have zero rates that go on indefinitely, you are inviting future problems," Kansas City Federal Reserve Bank President Thomas Hoenig said in an interview on CNBC.

"We know that zero is non-sustainable ... the market already knows that," Hoenig said. (Reporting by Mark Felsenthal and Pedro Da Costa. Editing by W Simon )