It's so easy to know where the economy is going. Just ask Federal Reserve chair Ben Bernanke! The only problem is understanding that he means when he answers the question. He doesn't always speak plainly -- in fact, in the grand tradition of Alan Greenspan, Fed officials always do their best to speak in riddles.
So let me help you. Here's the text of the statement issues after Wednesday’s FOMC meeting. I'll translate it into English for you, one sentence at a time.
FOMC: Information received since the Federal Open Market Committee met in April suggests that the economic recovery is proceeding and that the labor market is improving gradually.
ENGLISH: At least we're not in recession anymore. And I don't know about you, brother, but at least I've got a government job.
FOMC: Household spending is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
ENGLISH: I don't know how you guys out there do it. Somehow you keep on spending, even though you don't have a job, you're not making any money, and your credit cards are maxed.
FOMC: Business spending on equipment and software has risen significantly; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls.
ENGLISH: All you guys on cube farms have been downloading lots of songs from iTunes. But build a new factory? Hire more workers? Fuggedaboutit!
FOMC: Housing starts remain at a depressed level.
ENGLISH: You mean they're not building any more McMansions outside Las Vegas?
FOMC: Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad.
ENGLISH: Those damn Greeks. You'd think after 2,000 years they'd have figured out how to pay their bills.
FOMC: Bank lending has continued to contract in recent months.
ENGLISH: I got turned down for a loan! What's that about? I'm the guy who prints the money!
FOMC: Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be moderate for a time.
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