by Brian Maher
Janet Yellen left interest rates unchanged yesterday. She sees a patient on the mend… but too weak to stand on its own…
Labor markets have tightened, but economic growth proceeds at a trickle. Real household income has increased, but household spending is off. Inflation flickers, sometimes here, sometimes there. But it can’t crack 2%. Exports are soft.
The Fed draws a sketch of neither bust nor boom, but an extended visit from a nagging mother-in-law — not ideal — but generally bearable.
So it did nothing. And suggested only gradual rate increases going forward: