so thomas hoenig now clearly the headline of the day. it is time to join team hoenig. time to raise interest rates. we appreciate both of you being with us. these are fighting words, andy bush, from tom honig. >> they were. they underscore he is a little bit of a lone wolf out there. thank goodness he's out making the comments. when the fed was going through a recession and trying to figure out what to do, they didn't have enough people talking about what the implications were going to be for excessively low interest rates for a long period of time. i think they're starting to get it now. the question that the fed has to ask is, do we keep the conditions, monetary conditions that we established during a crisis, do we keep them going when we're seeing 5% gdp growth. the answer would seem to be pretty clearly, according to mr. hoenig, not to be the case. we certainly would see -- i think a shift from the fed coming up as we get more consistent employment growth going forward. >> scott, why not do what tom hoenig add vo indicates, put swrest rate at 1%. not anything to be

. >>> i want to go back to the thomas hoenig issue, i think he's the new superstar. all of you should read his railroads speech given in santa fe last week. it's an easy read. he calls for an immediate tightening of the fed fund's target rate to 1% in order to to that in turn will wind up another credit and financial bust. in other words, get ahead of the curve instead of staying behind it. slam down the threat of future inflation. to use his words, put the market on notice that it must again manage its risk and be accountable for its own action, and stop relying on the fed's easy money. what great advice from tom hoenig of the kansas city fed. i want to go a step further. a cup points. the biggest problem with the fed is easy money in the 2002-2005 period. first, of course, the rates were too low for too long. in those days greenspan called it a considerable period. but second, they had something called a slow measured pace. do you remember that? what that meant is the fed was tell graphing the small, teensy weansy incremental increases that took several years to ge

his name is thomas hoenig. hoe's speaking in santa fe, new mexico, at this incident. steve liesman, what is the lone wolf saying? >> reporter: some very strong words from caps as city fed president, thomas hoenig about the need to raise interest rates. he said raising rates too late holds danger for us all. sees the economy in pretty good shape. 3% gdp growth in 2010. consumer spending is growing at a solid pace. he's saying the forces necessary for a sustained recovery are also in place. inflation, likely remain low for the next year or two. but he repeats that the extended period language has outlived its usefulness. it's no longer warranted. artificially low rates from spending over savings and otherwise distorts capital markets, holding rates ort fishlly low for an extended period encourages bubbles. the concern about bubbles runs throughout this speech, erin. the fed, he says, too often delays raising rates, leading to higher inflation. and he calls for a policy reversal while the data are still mixed and wants a fund rate. i want to give you this one quote from

i just want to say, thomas hoenig, everyone has to read the speech he just gave in recent days. it is incredible and it's on target and it talks about the fed spurring another financial bubble, which will create imbalances that will have to be curbed. i'm sorry, trish, i just want to get that in. >> don't go anywhere. make sure he stays put, larry. speaking of bill dudley earlier this week he spoke about whether the fed can and whether it should prevent asset bubbles. take a listen to this one. >> despite the fact it's hard to discern bubbles, especially in their early stages. uncertainty is not grounds for inaction. >> so, can the fed really stop acid bubble is. along with mr. liesman himself. good to see you. i think it's sort of a given that the fed should certainly work to prevent ast bubbles but you make the point that they're incredibly difficult to decipher. explain. >> as particularly early in asset bubbles are associated with big economic inflection points. there's a new technology and financial innovations and prices are rising. it looks at that point to be about funda

just a couple of weeks ago we had comments from thomas hoenig who sent the markets down triple-digits and now today, this is almost like a breather for traders to go out to start selling right now. so, i'm thinking it is a knee-jerk reaction and short-term, and goldman, this is a serious charge, but ultimately the company will survive and be a good investment down the road. >> and the commodities needed a reason to sell today and we were lower and looking like lower on the week, but the fact that goldman sachs is the largest brokerage firm in the commodities sector is something that a lot of folks paid close attention to, and add to that the fact that paulson and company is a big trader when it comes to the commodities as well and particularly have made big bets on gold recently, and so we saw the sell-off accelerate in the gold market once the news came out, and now we are looking at the gold prices down nearly $25 today. >> let me go over the david faber at a major m&a conference in new orleans. david, what are you hearing among the folks, all of whom work in the financial sector? >

maybe that's how thomas hoenig would feel. he's calling to raise interest rates now. would you agree with that? >> well, i think the fed should move and raise interest rates. i think they have plenty of room. i think they could go up to maybe at least 1.5% without really rocking the boat here. i think there's enough strength in the economy and i think that that would probably help and not only would that help, perhaps, dampen future inflation, but i think it would help prevent, perhaps, another bubble, another asset bubble down the road. now, i am not suggesting that we're looking at an asset bubble, you know, within the next year or two, but if interest rates don't begin to move higher within the next, let's say, quarter or two, i think that there's a good chance that we could, perhaps, maybe get into a situation with where we might have another market crash in terms of equities where we could see another asset bubble form in equities. >> and you still say, though, there is strength in the economy. where are you seeing that strength? we're getting march chain store s