First Paragraph of the April 29th FOMC Statement:
"Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower. Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories, fixed investment, and staffing. Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time. Nonetheless, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability."A rosy interpretation of the FOMC Statement:
The contraction of the economy has slowed. Household spending is stabilizing. The economic outlook has improved since March because of easing of financial market conditions. The committee anticipates a gradual resumption of sustainable economic growth.
A literal interpretation of the FOMC Statement:
The economy has continued to contract. Household spending remains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories, fixed investment, and staffing. Economic activity is likely to remain weak for a time.
