PARSING THE FED
Tuesday, Dec. 12, 2006
THE FED'S STATEMENTS reflect how the members of the central bank's Federal Open Market Committee perceive the economy. The slightest changes are scrutinized for clues about where interest rates may be headed. The Dec. 12 statement announced that the Fed was keeping rates steady at 5.25%, its fourth pause in a row after 17 increases in 17 meetings. The Fed is betting slower economic growth and falling energy prices are easing inflation pressures -- meaning no reason to raise rates more, but no need to cut rates yet, either. Below are the differences between the October statement and the December one.
Tuesday, December 12, 2006
Posted by Vijaychandran Veerachandran at 12:44 PM