Fed 'well behind the curve' as Warsh faces election-year pressure: Former Fed Hoenig

• Hoenig would have dissented from the Fed's decision to hold rates, believing they are 'well behind the curve' on inflation.
• He notes real interest rates are near zero or negative, and the Fed's balance sheet is growing, indicating a highly stimulative environment.
• He expresses concern that election-year politics might prevent the Fed from taking necessary action in September.
• He urges the Fed to move beyond 'tough talk' to 'deeds' to regain credibility and achieve its 2% inflation target.

Former Kansas City Fed President Thomas Hoenig criticizes the Fed's decision to hold interest rates, stating they are 'well behind the curve' on inflation. He argues that current real interest rates are too low and the Fed's balance sheet is too stimulative, risking further inflation and compromising Fed independence in an election year.