A look at the Federal Reserve’s changing view on interest rates, inflation and global economy

WASHINGTON – A comparison of the Federal Reserve’s statements from its two-day meeting that ended Wednesday and its meeting July 28-29:

INTEREST RATES:

Now: No change: “The (Fed) today reaffirmed its view that the current 0 to 1/4 per cent target range for the federal funds rate remains appropriate.”

Then: “The (Fed) today reaffirmed its view that the current 0 to 1/4 per cent target range for the federal funds rate remains appropriate.”

GLOBAL ECONOMY:

September: “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.”

July: The Fed simply said it was monitoring international developments: The Fed’s decisions “will take into account a wide range of information, including … readings on financial and international developments.”

INFLATION:

September: The Fed acknowledged that financial markets expect inflation will decline: “Market-based measures of inflation compensation moved lower.”

July: “Market-based measures of inflation compensation remain low.”

THE ECONOMY:

September: “Information received … suggests that economic activity is expanding at a moderate pace.”

July: “Information received … indicates that economic activity has been expanding moderately in recent months.”