Powell's message at Jackson Hole shows the Fed won't pivot from its rate hike policy even if inflation continues to fall, former Fed president Thomas Hoenig says

• The former president of the Kansas City Fed thinks the central bank won't pivot from tightening.
• Thomas Hoenig told CNBC Monday that the Fed could possibly tinker with its next hike but it won't pause.

The central bank won't pivot away from monetary tightening even if inflation keeps falling, according to former Kansas City Fed president Thomas Hoeing.

Hoeing told CNBC's Squawk on the Street on Monday that while the Fed may "monitor" its next rate hike and adjust according to the inflation picture, the central bank won't pause because "inflation is pretty embedded in the economy."

Hoeing's comments follow increased hawkishness from Fed chair Jerome Powell, who on Friday reiterated the central bank's focus in taming inflation back down a 2% target. Hoeing added that while July's consumer price index reading was encouraging for inflation, he cautioned that the current trajectory could be short lived.

"In the meantime, you don't want the market getting ahead of itself thinking that the Fed is going to back off [of] it's inflation tightening stance,"

Powell's remarks sent stocks sharply lower on Friday, with the Dow Jones Industrial shedding more than 1,000 points and the Nasdaq Composite plunging almost 4%, with the rout continuing during Monday's session.