Fed's Hoenig: We're Still in 'Modest' Recovery

The US economy is in a "modest" recovery despite a recent spate of disappointing economic reports, said Kansas City Federal Reserve President Thomas Hoenig.

"I think good news and bad news comes, and you balance it out, and you look at the trends. And I think we have a modest recovery underway," the Fed board member said in an interview with CNBC.

"I don't think any reasonable economist should expect more than that, given the events that we've gone through."

Hoenig made his comments as Federal Reserve and central banking officials from around the world gathered in Jackson Hole, Wyoming, to discuss continuing problems and concerns with the world economy. He suggested some new ideas for action may come out of the conference.

"I think you will get a broad discussion," he said. "I think out of that, from different points of view, from different parts of the world, you'll get— some disagreement. Hopefully some agreement, and some ideas about how to go forward. So, yes, I think we'll get something useful out of this conference for global economic development going forward."

The meeting comes amid reports of some disagreement in the Federal Reserve over recent moves about handling its portfolio of securities.

"Uncertainty—is driving things," he add. "We all know that. And the idea here is to get some ideas on the table. Get some options defined ...so that we can perhaps chart a path as a little longer term. But I think we'll address some of those uncertainties. (We) won't eliminate them, but perhaps address some of those uncertainties. That's the goal."