Comparing US Fed’s views on economy, inflation

A comparison of the Federal Reserve’s statements from its two-day meeting that ended Wednesday and its meeting on June 18-19:

ECONOMY:

June: “Economic activity has been expanding at a moderate pace. … The (Fed) expects that, with appropriate policy accommodation, economic growth will proceed at a moderate pace and the unemployment rate will gradually decline.”

July: The Fed downgrades its view of economic growth from “moderate” to “modest,” but expects improvement later this year: “Economic activity expanded at a modest pace during the first half of the year. … The (Fed) expects that, with appropriate policy accommodation, economic growth will pick up from its recent pace and the unemployment rate will gradually decline.”

INFLATION:

Then: The Fed “also anticipates that inflation over the medium term likely will run at or below its 2 percent objective.”

Now: Fed officials expressed more concern about inflation, which has slowed: The Fed “recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.”

HOUSING:

Then: “The housing sector has strengthened further.”

Now: “The housing sector has been strengthening, but mortgage rates have risen somewhat.”

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

blog comments powered by Disqus