Kansas City Federal Reserve Bank President Tom Hoenig's biggest concern is a long period of high-inflation in the future.
That was the crux of Hoenig's presentation today at a Wichita Rotary Club luncheon at Botanica.
Hoenig has been the lone voice of dissent in the Federal Open Market Committee's decision to keep interest rates low and, more recently, to spend $600 billion to buy longer-term government bonds in hopes of further stimulating lending.
He said there's already plenty of liquidity in the market and the economy is recovering, albeit slowly.
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Continuing to keep rates low and introducing more stimulus will only serve to build in expectations for higher inflation in the long term, he said.
And then inflation will be hard to curb.
"That's why it's important to not wait too long to withdraw the stimulus," he said.