Kansas City Federal Reserve President Thomas Hoenig on Wednesday said that the U.S. economy will continue to recover, but it will take time to reach the Fed's targets for minimal unemployment and inflation.

Hoenig, speaking to CNBC television, said the economy was still deleveraging and dealing with uncertainty over long-term budget deficits.

We have stanched the crisis, we have brought the economy back toward a modest trend line, which we need as the deleveraging continues. This will take some time, Hoenig said. We have to finish the deleveraging. We have to get the fiscal side straightened out to where people have greater certainty and implement these new laws. If we do that, I think the economy could meet those goals, but monetary policy by itself can't do that.

(Reporting by David Lawder; Editing by Theodore d'Afflisio)