Included are a few exerts from the Press Release by the Federal Reserve yesterday, April 30, 2008 concerning their action to lower the Federal Funds rate by an addition .25%. If you want to read the entire press release, just click here.
- "Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters".
My translation: Yes, we are in a recession and have been for a while.
- "Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months".
My translation: This recession is reaching deep into everyone's pockets.
- "Still, uncertainty about the inflation outlook remains high. It will be necessary to continue to monitor inflation developments carefully".
My translation: The Fed is as confused as we are.
- "The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability".
My translation: Just reminding everyone that it is our job to monitor economic and financial developments. Duh!
If you have comments or questions, just let me know.
Jim Hogan, The LoanSource
