Updated from 12:53 p.m. EDT
members offered differing views of the U.S. economy Wednesday, although neither was happy with the current level of price pressure.
Speaking to a banking conference in Washington, Fed Governor Susan Bies joined a growing chorus of hawks by saying that inflation is "higher than I'd like to see" and that economic growth needs to cool off. Later in the day, Kansas City Fed President Tom Hoenig expressed less alarm, saying that while core inflation is at the high end of his comfort zone, it should taper off as growth slows.
A core reading of more than 2% on in the price component of the personal-consumption expenditures report makes Bies "uncomfortable," she said following a speech on banking policy, according to
The core PCE ran at 2.1% in the 12 months through April, the government said on May 26.
Likewise, the current growth rate in gross domestic product is "too high," Bies reportedly said.
Regarding the next move of the Federal Open Market Committee, Bies said there are "different views" among policymakers about interest rates, and that "we don't exactly know" when to stop raising rates,
quoted her saying. Bies said the Fed is targeting GDP growth in the "low 3%" range.
Bies spoke one day after Fed Chairman Ben Bernanke called signs that inflation is creeping up in the core PCE "unwelcome" and said the Fed would be vigilant in maintaining price stability. The comments led to a 199-point hammering in the
Dow Jones Industrial Average
Later, Hoenig, who is viewed as an interest-rate dove among Fed policymakers, characterized the Fed's current monetary stance as "neutral," and said its more recent tightening has yet to filter into the economy. He predicted a moderation in growth as the year progresses, according to