Wednesday, August 10, 2011

Darkening Tone from the Federal Reserve

The tone from the Federal Reserve has certainly darkened since June (only two months ago). The strike-throughs below represent the words used by the Fed in its June statement; the italics are the words used in its August statment:
  • "...economic growth is continuing at a moderate pace, though somewhat more slowly has been considerably slower than the Committee had expected..."
  • "...recent labor market indicators have been weaker than anticipated suggest a deterioration..."
  • "...household spending continues to expand has flattened out..."
The revised views at the Fed appear ominous for near-term economic growth in the US.

Federal Reserve Building, Washington, DC

Source: Indiviglio, D (2011, August 9), Fed Tries to Stimulate the Economy With Its Words, The Atlantic.
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1 comment:

Matt McKibbin said...

Of course this is happening. If anybody buys into the fallacy that you can print money and inject it into the economy to make things better than they are playing right into the feds hands. They are just trying to do some damage control now for the crash and burn that is going to happen later on in the next year to two years so they can say see we told you so.

August 10, 2011 12:14 PM

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