Dear David: The new statement will be issued after every meeting of the Federal Open Market Committee, the group of Fed board members in Washington and central bank presidents from the Fed's 12 regional banks, who meet eight times a year to set interest rate policies.
If the Fed is concerned about inflation, the statement will say that ''the committee believes that the risks are weighted toward conditions that may generate heightened inflation pressures in the foreseeable future.''
If those concerns continued, the Fed could be expected to raise interest rates at future meetings.
If the Fed is worried about spreading economic weakness, which it could fight by lowering interest rates to spur increased business activity, the statement would say, ''the committee believes that the risks are weighted mainly toward conditions that may generate economic weakness in the foreseeable future.''
The FOMC might also adopt a statement saying that future economic risks are equally balanced, the status the Fed is always striving to obtain, meaning that there would be no change in rates either up or down.
Fed Vice Chairman Roger W. Ferguson Jr., who headed the working group that studied the issue, said that the central bank believed the new disclosure policy would help clear up market confusion.
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Thanks for the above, I hadnt seen it, however, to me its just semantics. Pretty obvious what the above statements mean as to bias. haha. JDN
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