"I know we need to start by, if we were to do that, communicating to the market that we are not guaranteeing them the yield curve, that we are going to remove this language of ‘extended period,’" Hoenig, president of the Kansas City Fed, said in an interview with CNBC today. He said he didn’t know when the central bank may make such a move, while expressing a preference the Fed act this year.
The economy "has been improving," said Hoenig, who added that he believes the Fed should begin to consider "renormalizing" policy and that he favors "non-zero" interest rates.
Rising oil prices are not a "permanent" or "defining" factor for the economy right now, he said.