Fed Monetary Policy Report flags solid economy, elevated markets

By Michael S. Derby

(Reuters) -The Federal Reserve’s latest Monetary Policy Report to Congress, released on Friday, was upbeat about the state of the economy but warned about some concerning aspects of the financial system.

The report, which comes ahead of next week’s testimony before Congress by Fed Chair Jerome Powell, said central bank officials remain committed to getting inflation back to 2% and noted that when it comes to interest rate policy changes officials “will carefully assess incoming data, the evolving outlook, and the balance of risks.”