Comparing the Fed’s views on the economy
A comparison of the Federal Reserve’s statements from its March 15 meeting and the meeting that ended Wednesday.
TREASURY SECURITIES
March: The Fed repeated its intention to buy $600 billion in Treasury securities by the end of June, a goal it had first announced at its November meeting.
April: The Fed reaffirmed its intention to buy $600 billion in Treasury securities and said it “will complete” those purchases by the end of June.
UNEMPLOYMENT
March: “The economic recovery is on a firmer footing and overall conditions in the labor market appear to be improving gradually.”
April: “The economic recovery is proceeding at a moderate pace and overall conditions of the labor market are improving gradually.”
INFLATION
March: “Commodity prices have risen significantly since the summer, and concerns about global supplies of crude oil have contributed to a sharp run-up in oil prices in recent weeks. Nonetheless, longer-term inflation expectations have remained stable, and measures of underlying inflation have been subdued.”
April: “Commodity prices have risen significantly since last summer, and concerns about global supplies of crude oil have contributed to a further increase in oil prices since the committee met in March. Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued.”
INTEREST RATES
March: Left the federal funds rate target unchanged at a record low of zero to 0.25 percent, where it has been since December 2008, and repeated a pledge to keep rates “exceptionally low” for “an extended period.”
April: Left the federal funds rate unchanged and repeated the pledge to keep rates “exceptionally low” for “an extended period.”
FED’S GOALS
March: The Fed dropped previous language that progress toward the Fed’s economic goals had been “disappointingly slow.” It said, “The committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.”
April: “The committee continues to anticipate a gradual return to higher levels of resource utilization in a context of price stability.”
DISSENT
March: The Fed approved its decision on a 10-0 vote. For the second meeting in a row, there were no dissents.
April: The Fed approved its decision on a 10-0 vote. For the third meeting in a row, there were no dissents.
