FOMC Statements: Let's Ban the Boilerplate

These FOMC statements should be banned. They are a tired exercise in reader-hostile word-smithing, a conscious attempt to hide meaning and abuse language.

Check the following for the MS Word track changes on today's statement. Then try to explain how the words are anything but arbitrary.

 

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.

EconomicRecent information indicates that overall economic activity expanded in the second quarter,continues to expand, partly reflecting growthsome firming in consumerhousehold spending and exports.. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and elevatedthe rise in energy prices are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.

Inflation has been high, spurred by The Committee expects inflation to moderate later this year and next year. However, in light of the earliercontinued increases in the prices of energy and some other commodities, and the elevated state of some indicators of inflation expectations have been elevated. The Committee expects inflation to moderate later this year and next year, but, uncertainty about the inflation outlook remains highly uncertain.high.

The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time. Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation are also of significant concern to the Committee.and inflation expectations have increased. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.

Comments

[User 178949:]

Hilarious!

2008 Aug 05 03:53 PM

[Archman Inv...:]

The Fed did everything it could today, to touch on just about every subject to pacify both bull. and bear alike.

Comical to say the least.

If anything, it made them sound as if they have no idea what the future might bring and are completely on the fence in terms of Fed policy.

The Fed statements are made out to be some sort of holy statement by CNBC, but in actuality it is a joke.

2008 Aug 05 06:11 PM

[Jason Rines...:]

That was very interesting Paul. I liked it :)

2008 Aug 06 12:49 AM

[OldLimey:]

Great stuff! But on a serious note, shouldn't it be worrying that multi-trillion dollar markets, which at the end of the day have a major influence on the well-being of billions of people, actually pay attention to this garbage.

2008 Aug 06 02:05 PM