UPDATE 1-Fed program’s end won’t cause mtg rate jump-Hoenig

(Adds comments from PBS interview)

NEW YORK, Feb 5 (BestGrowthStock) – Kansas City Federal Reserve
Bank President Thomas Hoenig said on Friday that mortgage rates
will not necessarily rise significantly once the Fed ends its
emergency support program for the mortgage market.

The Federal Reserve is due to end its $1.25 trillion
mortgage-backed securities purchase program at the end of
March.

“I’m not willing to assume that mortgage rates are going to
rise significantly and that we have to step in,” Hoenig said
in an interview with PBS’ Nightly Business Report.

Hoenig, speaking after government data showed the U.S.
economy unexpectedly shed jobs in January, also said that job
growth will be modest, but improving “consistently” over the
course of the year.

He reiterated that the timing of any tightening of monetary
policy or interest rate hikes depends on the speed of the
economic recovery and the U.S. central bank should ensure it
has the flexibility to change course in a timely way.

Hoenig last week dissented from the Federal Reserve’s vow
to keep interest rates near zero for an “extended period,”
sparking some speculation that the central bank was moving
closer to an eventual rate hike.

“I didn’t object on the fact that interest rates were low
at this time. But I think policymakers need to have the
broadest options possible,” he said.

Asked about his timetable for raising interest rates,
Hoenig said: “It depends on the economy.”

Penny Stocks

UPDATE 1-Fed program’s end won’t cause mtg rate jump-Hoenig