These FOMC statements should be banned. They are a tired exercise in reader-hostile word-smithing, a conscious attempt to hide meaning and abuse language.
Check the following for the MS Word track changes on today’s statement. Then try to explain how the words are anything but arbitrary.
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.
Recent information indicates that overall economicactivity continues to expand,partly reflecting some firmingin householdspending .However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and the rise inenergy prices are likely to weigh on economic growth over the next few quarters.
The Committee expects inflation to moderate later this year and next year. However, in light ofthe continuedincreases in the prices of energy and some other commodities and the elevated state ofsome indicators of inflation expectations , uncertainty aboutthe inflation outlook remains high.
The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time.Although downside risks to growth remain, the y appear to have diminished somewhat, and theupside risks to inflation and inflation expectations have increased.The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.