{"id":3774,"date":"2008-08-05T15:38:30","date_gmt":"2008-08-05T22:38:30","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3774"},"modified":"2008-08-05T15:38:30","modified_gmt":"2008-08-05T22:38:30","slug":"the-fed-translated","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3774\/the-fed-translated\/","title":{"rendered":"The Fed Translated…."},"content":{"rendered":"
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As you have probably heard by now, the Fed held rates the same today.\u00a0\u00a0 Here\u2019s their statement (in italics) and my translation (in bold).\u00a0 I hope this helps you understand what is going on. <\/span><\/span><\/span><\/div>\n
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The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2%. <\/em><\/span><\/span><\/p>\n

Economic activity expanded in the second quarter, partly reflecting growth in consumer spending and exports. <\/em>Partly reflecting the stimulus checks that we all\u00a0received\u00a0during the\u00a0second quarter.\u00a0\u00a0 Did you spend, save, or pay off debts with yours? <\/strong> However, labor markets have softened further <\/em>When the markets expected\u00a070,000 jobs lost and we got\u00a0some \u201cgood news\u201d of only 51,000 jobs lost for July, you know the job market is softening. <\/strong> and financial markets remain under considerable stress <\/em>Yep.\u00a0 Enough said<\/strong>. Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters<\/em> The next few quarters – so we are going to be in this for a while<\/strong>. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth. <\/em>Eventually we\u2019ll work our way out of this.<\/strong><\/span><\/span><\/p>\n

Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities, and some indicators of inflation expectations have been elevated. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain. <\/em>Inflation has calmed down, especially with the recent drop in oil and other commodities.\u00a0\u00a0 However, we don\u2019t know what it\u2019s going to look like going forward.<\/strong><\/span><\/span><\/p>\n

Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee.<\/em> It\u2019s a toss up.\u00a0\u00a0 There are risks on both sides and we\u2019re not really sure what is going to happen. <\/strong>The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability. <\/em>We haven\u2019t fallen asleep, we are aware of what Read more<\/a><\/strong><\/span><\/span><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As you have probably heard by now, the Fed held rates the same today.\u00a0\u00a0 Here\u2019s their statement (in italics) and my translation (in bold).\u00a0 I hope this helps you understand what is going on. The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2%. Economic activity expanded […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-3774","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8184,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8184\/the-fed-translated-6\/","url_meta":{"origin":3774,"position":0},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"April 30, 2009","format":false,"excerpt":"Yep, it's that time again.\u00a0\u00a0\u00a0 The Fed met yesterday and today and came out with their announcement this afternoon at 2:15 pm.\u00a0\u00a0 I promise that this one won't be as long as the last Fed Translated was.As usual, my comments are in bold and italics.....April 29, 2009For Immediate Release:Information received\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3284,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3284\/mortgage-market-week-in-review-the-fed-translated\/","url_meta":{"origin":3774,"position":1},"title":"Mortgage Market Week in Review – the Fed Translated….","author":"Tom Vanderwell","date":"June 27, 2008","format":false,"excerpt":"Hi all, I want to thank Greg and Teri and Brian and....everyone for the honor of being invited to hang out with such an esteemed bunch.\u00a0 I'm really excited about it and looking forward to working, talking and \"raising the bar.\" I'll do up a post next week telling a\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6769,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6769\/the-fed-translated-4\/","url_meta":{"origin":3774,"position":2},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"January 30, 2009","format":false,"excerpt":"Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold) The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9504,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/","url_meta":{"origin":3774,"position":3},"title":"The Fed Translated – and why it isn’t good for interest rates…..","author":"Tom Vanderwell","date":"August 13, 2009","format":false,"excerpt":"My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5326,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5326\/the-fed-translated-2\/","url_meta":{"origin":3774,"position":4},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"October 29, 2008","format":false,"excerpt":"The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.\u00a0\u00a0 That's the lowest that it's been since June of 2004.\u00a0 If you recall, former Fed Chairman Greenspan is being blamed, in part, for causing the credit crisis by\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3813,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3813\/mortgage-market-week-in-review-5\/","url_meta":{"origin":3774,"position":5},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 8, 2008","format":false,"excerpt":"So, it\u2019s Friday again and what has this week been like for the mortgage world? Well, it\u2019s certainly not been boring, that\u2019s for sure! We\u2019re going to talk about six different things in today\u2019s Mortgage Market Week in Review: Freddie Mac - They started the week\u2019s major news by announcing\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3774"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3774\/revisions"}],"predecessor-version":[{"id":3776,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3774\/revisions\/3776"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}