WASHINGTON (MarketWatch) -- The Federal Reserve ought to abandon its zero interest-rate policy soon to prevent inflation from gaining a foothold and to avoid creating more financial imbalances, Kansas City Fed President Thomas Hoenig said Wednesday. Raising the federal funds target rate to 1% from the current range of 0% to 0.25% would be cautious but pro-active, he said. "A federal funds rate of 1% would still represent highly accommodative policy," Hoenig said. Hoenig has dissented at the past two Federal Open Market Committee meetings, arguing that the FOMC should not promise to keep rates low for an "extended period. http://www.marketwatch.com/story/feds-hoenig-seeks-cautious-rate-hikes-to-1-soon-2010-04-07 Accomodative for hedge funds seeking to profit from risk free trades ?