While it was a mostly quiet week in terms of Federal Reserve Board news, the chairman is no slacker. In a speech last week, Jerome Powell revealed that his fellow policymakers at the Fed had concluded that the economy wasn’t as strong in 2019 as the Fed believed it would be when it raised interest rates in 2018. Hence it cut rates again this year.

Hmmm. That sounds like the Fed was wrong, but it doesn’t sound like the august central bank is admitting it. Maybe because to do so would only embolden President Donald Trump’s thunderbolts of criticism. Anyway, the central bank has all but said it is finished with rate cutting for the time being. Of course, since it was wrong before it could be wrong again…oh, never mind.

“Monetary policy is now well positioned to support a strong labor market and return inflation decisively to” the Fed’s 2% target,” Powell said. He added that the economic outlook had remained favorable this year largely because the Fed had quickly adjusted its policy stance.

Right. Well, I don’t see any admission that maybe it shouldn’t have raised rates in 2018. Do you? But what do I know? Powell said he sees saw no reason why the decade long economic expansion couldn’t continue.

The Commerce Dept. said Wednesday that the economy gr...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free