WASHINGTON, Feb 1 (Reuters) - The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data proves weaker than expected, Kansas City Fed President Thomas Hoenig said.
Another round of bond buying “may get discussed” if the numbers look “disappointing,” Hoenig told Market News International in an interview published on Tuesday.
Hoenig, an inflation hawk who vocally opposed the Fed’s commitment to purchase an additional $600 billion in government bonds, reiterated his call for the central bank to reverse course, according to Market News.
He called for the U.S. central bank to “normalize” policy by shrinking its balance sheet and raising interest rates.
Hoenig has argued the Fed should raise rates to 1 percent and potentially higher depending on the economy’s performance.
The Fed has kept interest rates near zero percent since December 2008.