Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said interest rates should be increased gradually to minimize the effect on the market and that rates should be raised sooner rather than later. "I think we shouldn't be guaranteeing the markets a zero rate for an extended period. I think the crisis of a year ago has passed. We're in recovery," Hoenig said. "We can't predict the future, and therefore we should not be giving guarantees. I think it'll help the market actually adjust if they know that rates can't be at zero forever -- and shouldn't be."

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