Research Excerpts

The 6 Most Important Words In Wednesday’s Fed Statement

Posted on: Thursday, May 2nd, 2013

The 6 most important words in Wednesday’s Fed Statement:

“…fiscal policy is restraining economic growth.”

The FOMC (Federal Open Market Committee) wasn’t clear (probably on purpose) as to exactly what “fiscal policy” it was referring to.

But it is clear (at least to us) that it wanted to make a strong and clear reference to this issue by putting it in the first paragraph of the Statement.

Two likely candidates are: 1) sequestration cuts, and 2) recent reductions in government spending.