Fed Sits on Thumbs, Promises to Become Irrelevant Until 2021

The Fed is officially persona non grata.

Following a year of being beaten around the face and brow by Trump, Powell is mailing it in for 2020, forecasting nothing thru 2021.

“The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective,” the statement said.

“The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate,” the committee added.

This of course means nothing. At the first sign of instability, the Fed will remove the dicks from their mouths and slash rates again. Nothing happens, until it does. In this case, nothing is forecasted thru 2021.