Comment
0
Tweet
0
Print
RSS Feeds

Comparing US Fed's views on economy, rates

Wednesday - 3/19/2014, 4:10pm  ET

The Associated Press

A comparison of the Federal Reserve's statements from its two-day meeting that ended Wednesday and its meeting Jan. 28-29:

INTEREST RATES:

Now: The Fed has become less specific about when it will raise its benchmark short-term interest rate: "The Committee will assess progress -- both realized and expected -- toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments."

Then: Low interest rates "will be appropriate at least as long as the unemployment rate remains above 6 1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

ECONOMY:

March: Its assessment of the economy is weaker: "Information received since the (Fed) met in January indicates that growth in economic activity slowed during the winter months, in part reflecting adverse weather conditions."

January: "Information received since the (Fed) met in December indicates that growth in economic activity picked up in recent quarters."

POLICY GOALS:

March: The Fed has added a new sentence: "The change in the (Fed's) guidance does not indicate any change in (its) policy intentions as set forth in its recent statements."


Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.