The Policy Statement

There really is not much to say here. This was a total cut and paste job. I guess the Fed has absolutely no use whatsoever for an economics writer. This crew changes a word or two here or there and calls it a day. I see only two minor changes in the statement. They are both in the third paragraph. After re-assuring readers that unemployment remains low and inflation somewhat stubborn, this statement announces that the 1/4 percentage point rate cut in exactly the same way as in November, with the exception that the new target range is 4.25% to 4.5%.

In the very next sentence, the words "the extent and timing" are inserted into an existing sentence that now reads... "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks." Guess they want to make sure that we know how careful they are. Jeez.