As the Federal Reserve has a decision to make regarding their approach to record-high inflation, former Kansas City Federal Reserve president and CEO Thomas Hoenig predicted on "Mornings with Maria" that prices will remain high.
THOMAS HOENIG: I think given the very strong demand, given the various cost of labor that's a supply shock, some of the trade issues, I think inflation is going to stay high. There's a lot of still excess consumption ability in the economy with these very high savings rates, so there's going to be a lot of demand. So, inflation is going to be high and the Federal Reserve is going to have to deal with that.
They know they have to move but they're still going to be very cautious about that unemployment rate. And that's the thing that I think will slow them down if they do slow down. And if they do move and they see low numbers, they start backing off, then that will be even worse because their credibility will be gone. It'll be even more difficult. They think to deal with inflation in the future. So they just have to they have to bear down, do it carefully, slowly but firmly and not go back and forth. And that's their challenge.
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