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The Stopped Clock

Reading over the just-released full 2005 FOMC transcripts I note that Kansas City Fed President Thomas Hoenig consistently seemed to feel that his colleagues were underestimating inflation risks.

I wonder if it ever bothers the longest-serving Fed President that this is what he always says and that he’s never been right. If I kept making the same prediction, year after year, for two decades and was invariably wrong I’d start to wonder. Doesn’t this bother him? Doesn’t it bother the Kansas City Fed’s Board?

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