Fed talk last week was conflicting, as it often is. It reminds me of the oft quoted phrase by former Federal Reserve chairman Alan Greenspan, who reportedly said: “If I seem unduly clear to you, you must have misunderstood what I said.” Nevertheless, the takeaway from Fed comments last week appears that the U.S. economy continues to be on the mend. Yes it will be fits and starts, but the direction is right. That would seem to support the equity rally we’ve seen from lows.

For example, Dallas Federal Reserve President Robert Kaplan said America’s growth will accelerate in 2021—which we’ve been saying, by the way—as the coronavirus spread slows. “In ’21, we will see an above-trend growth, and we will continue to grind down the unemployment rate,” Kaplan said on CNBC’s “Closing Bell” on Tuesday. He believes the US will see a 4.5%-5% contraction in 2020.

Seconding him was Fed New York head John Williams, who said Thursday on Yahoo Finance that expected to see positive economic momentum in the second half of the year. Of course, previous to that, Kaplan said Monday that the burst of activity seen in April and May is possibly easing, due to the resurgence of COVID-19 in some states, like California.

The latest data is encouraging. U.S. Industrial pro...

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