Thomas M. Hoenig
Encyclopedia
Thomas Michael Hoenig took office October 1, 1991, as the eighth chief executive of the Tenth District Federal Reserve Bank
, in Kansas City
, United States. He is serving a full term that began March 1, 2001. In 2010, he is serving as a voting member of the Federal Open Market Committee
, as one of five of the twelve Federal Reserve Bank presidents that sit on the Committee on a yearly rotating basis. He is known as an anti-inflation
hawk.
On Thursday, October 20, 2011, Hoenig was nominated by President Barack Obama
to serve as the Vice-Chairman of the Board of Directors of the Federal Deposit Insurance Corporation
(FDIC). He will need to be confirmed by the U.S. Senate before he takes office.
, where his father owned a plumbing business. He was raised Catholic
and attended Catholic schools. Hoenig earned a B.A. in economics
and mathematics
from St. Benedict's College (now Benedictine College
), Atchison, Kansas
, and M.A. and Ph.D. degrees in economics from Iowa State University
.
Hoenig joined the Federal Reserve Bank of Kansas City in 1973 as an economist in the banking supervision area. He was named a vice president in 1981 and senior vice president in 1986.
According to Fed salary figures released for 2010, Hoenig earns $374,400 per year, in the mid-range for the twelve regional bank chairs and considerably more than Fed
chair Ben Bernanke ($199,700), whose pay is limited by law.
He has served as an instructor of economics at the University of Missouri-Kansas City and lectured on the U.S. banking and regulatory system for the People's Bank of China
. Dr. Hoenig is a member of the Board of Trustees of the Ewing Marion Kauffman Foundation
and serves on the boards of directors of Midwest Research Institute
and Union Station
.
On March 25, 2011 Hoenig announced his intent to retire on October 1, 2011, as required under the Federal Reserve Board's mandatory retirement rules for Federal Reserve Bank Presidents. The retirement marks 20 years as president for Hoenig whose first day as Bank president was October 1, 1991, and 38 years of total service to the Federal Reserve.
Again on August 13, 2010, in a speech in Lincoln, Nebraska
, Hoenig criticized the then current Federal Reserve action of a zero policy rate calling it "...a dangerous gamble." He also stated, "There may be ways to accelerate GDP growth, but, in my view, highly expansionary monetary policy is not a good option."
Federal Reserve Bank of Kansas City
The Federal Reserve Bank of Kansas City covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. The Bank has branches in Denver, Oklahoma City, and Omaha. The current president is...
, in Kansas City
Kansas City, Missouri
Kansas City, Missouri is the largest city in the U.S. state of Missouri and is the anchor city of the Kansas City Metropolitan Area, the second largest metropolitan area in Missouri. It encompasses in parts of Jackson, Clay, Cass, and Platte counties...
, United States. He is serving a full term that began March 1, 2001. In 2010, he is serving as a voting member of the Federal Open Market Committee
Federal Open Market Committee
The Federal Open Market Committee , a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations . It is the Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money...
, as one of five of the twelve Federal Reserve Bank presidents that sit on the Committee on a yearly rotating basis. He is known as an anti-inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
hawk.
On Thursday, October 20, 2011, Hoenig was nominated by President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
to serve as the Vice-Chairman of the Board of Directors of the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC). He will need to be confirmed by the U.S. Senate before he takes office.
Life and career
Hoenig was born in Fort Madison, IowaFort Madison, Iowa
Fort Madison, situated on the Mississippi River, is a city in and one of the county seats of Lee County, Iowa, United States. The other county seat is Keokuk. The population was 10,715 at the 2000 census...
, where his father owned a plumbing business. He was raised Catholic
Catholic
The word catholic comes from the Greek phrase , meaning "on the whole," "according to the whole" or "in general", and is a combination of the Greek words meaning "about" and meaning "whole"...
and attended Catholic schools. Hoenig earned a B.A. in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
and mathematics
Mathematics
Mathematics is the study of quantity, space, structure, and change. Mathematicians seek out patterns and formulate new conjectures. Mathematicians resolve the truth or falsity of conjectures by mathematical proofs, which are arguments sufficient to convince other mathematicians of their validity...
from St. Benedict's College (now Benedictine College
Benedictine College
Benedictine College is a co-educational university in Atchison, Kansas, founded in 1971 by the merger of St. Benedict's College for men and Mount St. Scholastica College for women. It is a Roman Catholic, Benedictine, liberal arts, and residential college located on bluffs overlooking the...
), Atchison, Kansas
Atchison, Kansas
Atchison is a city situated along the Missouri River in the eastern part of Atchison County, located in northeast Kansas, in the Central United States. As of the 2010 census, the city population was 11,021. It is the county seat and most populous city of Atchison County...
, and M.A. and Ph.D. degrees in economics from Iowa State University
Iowa State University
Iowa State University of Science and Technology, more commonly known as Iowa State University , is a public land-grant and space-grant research university located in Ames, Iowa, United States. Iowa State has produced astronauts, scientists, and Nobel and Pulitzer Prize winners, along with a host of...
.
Hoenig joined the Federal Reserve Bank of Kansas City in 1973 as an economist in the banking supervision area. He was named a vice president in 1981 and senior vice president in 1986.
According to Fed salary figures released for 2010, Hoenig earns $374,400 per year, in the mid-range for the twelve regional bank chairs and considerably more than Fed
Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
chair Ben Bernanke ($199,700), whose pay is limited by law.
He has served as an instructor of economics at the University of Missouri-Kansas City and lectured on the U.S. banking and regulatory system for the People's Bank of China
People's Bank of China
The People's Bank of China is the central bank of the People's Republic of China with the power to control monetary policy and regulate financial institutions in mainland China...
. Dr. Hoenig is a member of the Board of Trustees of the Ewing Marion Kauffman Foundation
Ewing Marion Kauffman Foundation
The Ewing Marion Kauffman Foundation is a non-profit foundation based in Kansas City, Missouri. It has an asset base of $2 billion...
and serves on the boards of directors of Midwest Research Institute
Midwest Research Institute
MRIGlobal is an independent, not-for-profit, contract research organization based in Kansas City, Missouri....
and Union Station
Union Station
Union Station, Union Terminal, Union Depot, or Union Passenger Station may refer to:-Film and music:* Union Station , a 1950 film* Union Depot , a 1932 film...
.
On March 25, 2011 Hoenig announced his intent to retire on October 1, 2011, as required under the Federal Reserve Board's mandatory retirement rules for Federal Reserve Bank Presidents. The retirement marks 20 years as president for Hoenig whose first day as Bank president was October 1, 1991, and 38 years of total service to the Federal Reserve.
Speech/criticism
On March 6, 2009, Hoenig presented a widely noted speech entitled 'Too Big Has Failed' critical of the approach taken to the capitalization and liquidity crises and suggesting alternate approaches.Again on August 13, 2010, in a speech in Lincoln, Nebraska
Lincoln, Nebraska
The City of Lincoln is the capital and the second-most populous city of the US state of Nebraska. Lincoln is also the county seat of Lancaster County and the home of the University of Nebraska. Lincoln's 2010 Census population was 258,379....
, Hoenig criticized the then current Federal Reserve action of a zero policy rate calling it "...a dangerous gamble." He also stated, "There may be ways to accelerate GDP growth, but, in my view, highly expansionary monetary policy is not a good option."