A look at the past 3 Fed statements on economy

AP News
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Posted: Dec 16, 2009 4:57 PM

A look at the evolution of the Federal Reserve's statements on the economy from its three most recent meetings:

The Fed on Sept. 23 said "economic activity has picked up following its severe downturn."

The Fed on Nov. 4 said "economic activity has continued to pick up."

The Fed on Wednesday said "economic activity has continued to pick up and that the deterioration in the labor market is abating."

The Fed on Sept. 23 said conditions "have improved further, and activity in the housing sector has increased."

The Fed on Nov. 4 said conditions "were roughly unchanged, on balance, over the intermeeting period ... (and) activity in the housing sector has increased over recent months."

The Fed on Wednesday said "the housing sector has shown some signs of improvement over recent months. Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth and tight credit."

The Fed on Sept. 23 said businesses "are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales."

The Fed on Nov. 4 repeated its Sept. 23rd language.

The Fed on Wednesday said "businesses are still cutting back on fixed investment, though at a slower pace, and remain reluctant to add to payrolls; they continue to make progress in bringing inventory stocks into better alignment with sales."

The Fed on Sept. 23 said of mortgage-securities purchase program that it "will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010."

The Fed on Nov. 4 reiterated that the purchases will be complete by the end of the first quarter. But it said it will buy "about $175 billion of agency debt ... (which) is consistent with the recent path of purchases and reflects the limited availability of agency debt."

The Fed on Wednesday is "in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about 175 billion of agency debt."

The Fed also added language Wednesday restating plans to wind down emergency lending programs when they expire next year. It expects "most of the Federal Reserve's special liquidity facilities will expire on Feb. 1, 2010, consistent with the Federal Reserve's announcement of June 25, 2009."