“Some people without brains do an awful lot of talking, don’t you think?” – L. Frank Baum, The Wizard of Oz.
So, today, a report from the Federal Reserve to Congress, from the brainless to the brain dead.
Federal Reserve policymakers see an economy that may be past full employment, financial market prices that are high and overall growth that continues to gather steam.
Those conditions remain appropriate for further interest rate increases, though inflation pressures remain fairly muted for now, according to a key report to Congress the central bank released Friday.
The monetary policy report provided a wide-ranging view of conditions for new Chairman Jerome Powell, who took the Fed’s reins earlier this month. Powell will present the report along with remarks during congressional testimony Tuesday.
“The FOMC expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong,” the report said, echoing language from prior Federal Open Market Committee meetings.
Translation: We still have absolutely no idea what we’re doing but things seem well regardless.
I sincerely hope this Friday afternoon finds you well.