The WSJ reported that "THE FED’S STATEMENTS reflect how the members of the central bank’s Federal Open Market Committee perceive the economy. The Aug. 8 statement announced that the Fed was keeping rates steady at 5.25%, its first pause after 17 increases in 17 meetings."
The Fed is betting slower economic growth will ease currently high
rates of inflation. In its statement, though, it also took out a
reference to productivity gains’ chilling effect on price levels.
PARSING THE FED
WSJ, Tuesday, Aug. 8, 2006