The Always Exciting FOMC Statement
The latest dynamite “Federal Reserve issues FOMC Statement” assessing the state of the economy and any changes to monetary policy was released by the Fed today.
It’s full of gobbledygook talk, yet awaited with baited breath.
It is written by the FOMC – the Federal Open Market Committee. The committee is made up of a bunch of financial gurus led by the dapper, Ben Bernanke.
Only stuffy, seriously sexually-repressed, pencil-headed bankers could possible understand it.
Don’t believe me? Do you understand it? When was the last time you heard Fed Chairman Ben Bernanke described as the life of the party?
– I rest my case!
Fortunately, a cheat sheet to help ordinary folks understand it was created.
You see, bankers aren’t creative thinkers. Each time they just make a copy of the previous statement and then scribble in near-random changes.
I think Moses chipped out the first FOMC statement on the long lost 11th tablet.
Word-for-Word FOMC Comparison
Smart folks took to doing word-for-word comparisons between the current one and the previous one to figure out what FOMC statements say.
Here is the newest:
“No surprises from FOMC – Statement Redline Comparison” – 3/20/2013
From it we learn:
- December got changed to “January”
- Economic growth returned to “moderate”
- Labor market shows “signs of improvement”
- Housing sector “strengthened”
- Fiscal policy more “restrictive”
- FOMC to keep making $85B/month asset purchases
- If the FOMC changes anything, they will let us know
That’s it! You now know what it says. I bet you feel a lot better, don’t you?