Hoenig says Fed policy must maintain dollar value

Federal Reserve monetary policy over the long run must be aimed at maintaining the U.S. dollar's value by focusing on keeping inflation low, Kansas City Fed President Thomas Hoenig said on Monday.
Speaking at an economic forum in Gering, Nebraska, Hoenig said he will be "more anxious than others" to start raising interest rates when feasible, but did not suggest when that would be as the United States faces up to a big financial-market crisis.
The Fed's huge injections of liquidity are not inflationary for now, but given already high levels of inflation the Fed faces "a very delicate, difficult piece of surgery" to raise rates at just the right time, he said.