Former Kansas City Fed President Opposes Interest Rate Cuts

Thomas Hoenig warns against lowering rates amid high inflation

Apr. 17, 2026 at 1:12pm

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A geometric abstract illustration using primary colors and simple shapes to conceptually represent the complex dynamics of interest rates and inflation without any text or identifiable elements.A former top Fed official warns against lowering interest rates amid high inflation, underscoring the central bank's delicate balancing act.Kansas City Today

Thomas Hoenig, the former president of the Federal Reserve Bank of Kansas City, has cautioned against lowering interest rates, arguing that it would be unwise given the current high levels of inflation. Hoenig, who is now a distinguished senior fellow at George Mason University's Mercatus Center, made these comments during an appearance on CNBC's 'Squawk Box'.

Why it matters

Hoenig's views carry significant weight as a former top Fed official. His opposition to rate cuts could influence the central bank's policy decisions as it navigates the delicate balance between controlling inflation and supporting economic growth.

The details

In the interview, Hoenig stated that 'certainly interest rates should not be lowered' given the high inflation environment. He emphasized the need for the Federal Reserve to maintain its focus on reining in price increases, even if it means accepting some economic slowdown in the short term.

  • Hoenig's comments were made on April 17, 2026 during an appearance on CNBC's 'Squawk Box' program.

The players

Thomas Hoenig

The former president of the Federal Reserve Bank of Kansas City and currently a distinguished senior fellow at George Mason University's Mercatus Center.

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What they’re saying

“Certainly interest rates should not be lowered.”

— Thomas Hoenig, Former Kansas City Fed President

The takeaway

Hoenig's opposition to interest rate cuts reflects the difficult policy choices facing the Federal Reserve as it tries to balance the need to control inflation without stifling economic growth. His views will likely carry significant weight as the central bank navigates this challenging environment.