Comparing the Fed's views on the economy

AP News
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Posted: Jun 22, 2011 5:56 PM
Comparing the Fed's views on the economy

A comparison of the Federal Reserve's statements from its April meeting and the meeting that ended Wednesday.

TREASURY SECURITIES

April: The Fed repeated its intention to buy $600 billion in Treasury securities and said it "will complete" those purchases by the end of June.

June: The Fed affirmed its decision to wrap up its bond buying on June 30 but said it will maintain the current size of its bond holdings.

UNEMPLOYMENT

April: "The economic recovery is proceeding at a moderate pace and overall conditions of the labor market are improving gradually."

June: "The economic recovery is continuing at a moderate pace, though somewhat more slowly than the committee expected. Also, recent labor market indicators have been weaker than anticipated."

INFLATION

April: "Commodity prices have risen significantly since last summer, and concerns about global supplies of crude oil have contributed to a further increase in oil prices since the committee met in March. Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued."

June: "Inflation has picked up in recent months, mainly reflecting higher prices for some commodities and imported goods, as well as the recent supply chain disruptions. However, longer-term inflation expectations have remained stable."

INTEREST RATES

April: Left the federal funds rate target unchanged at a record low of zero to 0.25 percent, where it has been since December 2008, and repeated a pledge to keep rates "exceptionally low" for "an extended period."

June: Left the federal funds rate unchanged and repeated the pledge to keep rates "exceptionally low" for "an extended period."

DISSENT

April: The Fed approved its decision on a 10-0 vote. For the third meeting in a row, there were no dissents.

June: The Fed approved its decision on a 10-0 vote. For the fourth meeting in a row, there were no dissents.