News

A look at how the Fed's views have changed on the economy and the job market

WASHINGTON – A comparison of the Federal Reserve’s statements from its two-day meeting that ended Wednesday and its meeting on April 30-May 1:

ECONOMY:

May: The Fed “continues to see downside risks to the economic outlook.”

June: Now, Fed policymakers see “the downside risks to the outlook for the economy and the labour market as having diminished since the fall.”

JOBS:

Then: “Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated.”

Now: More improvement has been seen: “Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated.”

INFLATION:

Then: “Inflation has been running somewhat below the Committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices.”

Now: The Fed says that recent declines in inflation are likely temporary: “Partly reflecting transitory influences, inflation has been running below the Committee’s longer-run objective, but longer-term inflation expectations have remained stable.”