An Enigma Wrapped In Fedspeak While Regional Bankers Stew

The Federal Reserve Board’s monetary policy committee proved itself a fan of incongruity last week. It increased its forecast of the economy’s growth rate, lowered its expectation of the unemployment rate, and revised upward its anticipated inflation rate. In view of these forecasts of more growth, a tighter labor market and higher inflation, the Fed’s gurus decided not to raise the Bank’s benchmark interest rates.