Fed official worries holding interest rates too low for too long could spur inflation later on

A Federal Reserve official says keeping interest rates at record lows is a "dangerous gamble" that could hurt the economy later on by unleashing inflation or new speculative bubbles.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, made the comments Friday, just days after dissenting with the Fed's decision to take an unconventional step to strengthen the fragile recovery by buying government debt.

Hoenig did say the economy still needs the support of ultra-low rates now, but he worries that keeping rates too low for too long could create problems later on. Interest rates have been at record lows for nearly two years.