Just last month we reported that the Federal Reserve Board’s policy statement was almost identical to its previous policy statement. Now the Fed has issued another policy statement – and it’s almost identical to the last one.
Granted, there’s not much to say. The economy has flatlined, the Fed has run out of policy tools and it’s mid-summer … a time when many people spend more time avoiding work than actually working. But this is the Federal Reserve Board we’re talking about – the people who are in charge of our economy, since neither President Obama nor Congress want to do much about it.
“The most notable change,” as Goldman Sachs’ Chief Economist Jan Hatzius wrote, “was the addition of the word ‘some’ in the committee’s description of desired progress in the labor market. Specifically, the June FOMC statement said that it will be appropriate to raise interest rates ‘when it has seen further improvement in the labor market’ (and is reasonably confident that inflation will move back to two percent). Today’s statement said that rate hikes would be appropriate after ‘some further improvement in the labor market.’ ”
So “further” became “some further.” (more…)