Archive for the ‘Wall Street Journal Online’ tag
Translating The Federal Reserve’s Announcement Into English (August 5, 2008)
For the second consecutive meeting, the Federal Open Market Committee left the Fed Funds Rate unchanged at 2.000 percent.
The key comment — which also appeared in its June statement — is below:
Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.
Translated, it reads:
Rate and policy changes we made until this point have yet to work their way through the economy, but when they do, we expect them to right the economic ship.
In other words, the Fed will likely stay on pause through its September 16 meeting unless something freaky happens. The Fool in the Shower, by the way, is one such freak.
Source
Parsing the Fed Statement
The Wall Street Journal Online
August 5, 2008
http://online.wsj.com/internal/mdc/info-fedparse0808.html