WASHINGTON – A comparison of the Federal Reserve’s statements from its two-day meeting that ended Wednesday and its meeting July 28-29:
INTEREST RATES:
Now: No change: “The (Fed) today reaffirmed its view that the current 0 to 1/4 per cent target range for the federal funds rate remains appropriate.”
Then: “The (Fed) today reaffirmed its view that the current 0 to 1/4 per cent target range for the federal funds rate remains appropriate.”
GLOBAL ECONOMY:
September: “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.”
July: The Fed simply said it was monitoring international developments: The Fed’s decisions “will take into account a wide range of information, including … readings on financial and international developments.”
INFLATION:
September: The Fed acknowledged that financial markets expect inflation will decline: “Market-based measures of inflation compensation moved lower.”
July: “Market-based measures of inflation compensation remain low.”
THE ECONOMY:
September: “Information received … suggests that economic activity is expanding at a moderate pace.”
July: “Information received … indicates that economic activity has been expanding moderately in recent months.”
