joining us is thomas hoenig.s great to have you back on the show it's hard to read something like this because there's clearly a discussion whether they could overdo it, whether it's time to pull back on the aggressive interest rate increases. at the same time how worrisome the inflation numbers are. what do we make of that? >> frankly, that's not unusual for an fomc meeting in my experience and i would tell you as you read through the minutes and you have to do it quickly i realize right now, as i've read through them there's unanimous agreement inflation is the top priority turnpike it was still too high that was the priority. then you get into it and they talk about the fact that there is a slowing in the economy, when you get the regional reports from the participants clearly indications things are slowing and that should begin to mitigate some of the inflationary pressures also some discussion of labor and wages before the big announcement still a feeling that might come more into balance and the fact that t

host: talking to thomas hoenig this morning.f you want to join this conversation about the economy. from lines as usual republicans (202) 748-8001. democrats (202) 748-8000. independents (202) 748-8002. he is going to be with us until about a: 45 eastern. a conversation seven minutes in. we have not talked inflation yet. how long do you expect us to be in these decades long highs of inflation? we saw the numbers move in the right direction in its latest report. do you expect it to continue to come down? guest: i do expect it to moderate as the fed has increased interest rates from external people levels. they were a little slow on doing that. i think that's why the inflation is as high is that is that they are beginning to take some of that away. the rates have come up from basically zero. number two, they are beginning to shrink the balance sheet which is the amount of money they put into the economy so they are letting that run out. that will take some of the demand at of the economy. the real question will be how long they wi

joining me now is thomas hoenig, distinguished senior fellow at the mercatus center. was president and chief executive officer of the federal reserve bank of kansas city and a member of the federal reserve system's federal open market committee from 1991 to 2011. that is quite the introduction. tell us your view on the criteria for the federal reserve to raise interest rates further in september, is it what you expected?- further in september, is it what you expected? yes, it is, if ou what you expected? yes, it is, if you read _ what you expected? yes, it is, if you read the _ what you expected? yes, it is, if you read the minutes - what you expected? yes, it is, if you read the minutes the - if you read the minutes the committee are very committed to down inflation, and 8.5% year—on—year inflation is still too high, and i think everyone realises that. i think there was in the minutes of the amount of discussion that things are beginning to slow, we are seeing some of that even though the labour market remains very strong, they are seeing some increases with the init

mick mulvaney, thank you so much for being here the morning and thomas hoenig.row morning right here on fox business, 6-9 a.m. eastern. let's get right to "varney & company." suh, take it away. stuart: i shall. the most important indicator of the month, everybody's affected by this, so here is the consumer inflation report. in the last month, no change. how about that? but in the last year, consumer prices have gone up 85. you -- 8.5%. you strip out the food and emergency prices, you get the core rate, and that is up 5.9% in the last year. all of this tells us that the rate of price increase is slowing, it also tells us that with the core rate still

mike santoli. >>> let's stick with the fed and joining us now, former kansas city fed president thomas hoenighave you back welcome. >> thank you good to be back with you. >> you made the point, sometimes the equity market needs to be hit over the head a few times but they finally heard him >> i think so. but i will give chairman powell some credit. he was short to the point which is what was needed, and he had to make it clear, based on friday's markets, that inflation was the priority, and even though people say inflation, it has been a downtick and so forth, who knows whether that is going to be persistent or not. that's going to take time. in the meantime, you don't want the market getting ahead of itself, thinking that the fed is going to back off its inflation-fighting stance. and i point out, the second thing that's been brought up during the conference where chairman powell spoke was the fact that we're also, they are also involved in quantitative tightening, so there's liquidity issues that i think they're very much aware of, and that has to be balanced as well, and perhaps the market

kathleen: thomas hoenig thank you for joining us calling on your 20 years of experience at the kansas city fed. mercatus center distinguished fellow former kansas city fed president. i love being here and here people who have been there and done that talk to us about it. haidi: of course, stay tuned for more special coverage with kathleen out of jackson hole. we will have the fed chairman jerome powell's speech live at 10:00 a.m. new york time friday to talk p.m. hong kong. now let's get to new york with su keenan for the first word headlines. su: a federal judge in florida ordered the justice department to release a redacted version of the affidavit that lays out the government case for searching former president donald trump's mar-a-lago home. the judge accepted the doj request to keep secret the identities of witnesses, law enforcement agents, jury information, and other sensitive data. doj hasn't affrighted to file the documents. in russian president putin ordered his military to increase troop numbers by 137,000. the decree did not explain whether that would happen with a draft o

mick mulvaney, thank you so much for being here the morning and thomas hoenig. great conversation, everybody, thank you. that'll do it for us, we will see you tomorrow morning right here on fox business, 6-9 a.m. eastern. let's get right to "varney & company." suh, take it away. stuart: i shall. the most important indicator of the month, everybody's affected by this, so here is the consumer inflation report. in the last month, no change. how about that? but in the last year, consumer prices have gone up 85. you -- 8.5%. you strip out the food and emergency prices, you get the core rate, and that is up 5.9% in the last year. all of this tells us that the rate of price increase is slowing, it also tells us that with the core rate still strong, inflation will be around for some time to come. now look at the market reaction. terrific, right in the dow industrials will be up over 400 points, and the nasdaq will be up about 300 pointings. that is a very -- points. that is a having solid -- can very solid rally. that's because inflation is moderating, and the market li