FED Statement – Side By Side Comparison (Not Pretty)

Many subtle changes to the outlook. Often times the FED is a great cheerleader for the economy, but this time it is apparent that they have no good news to share. Keeping rates at historically low levels through until at least 2013 was reason to both cheer and worry. In other words, it is obvious that the FED sees a serious down tick in economic activity, but the low interest rate “promise” helps to relieve some uncertainty. Quick Question: Until 2013, why does the FED need to meet?

…Information received since the Federal Open Market Committee in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out…