In August the FOMC described the economic recovery as “sustainable”. In September that adjective was absent. Jeff Pietsch posted a handy version of the statement with line-by-line changes from the prior month. I recreated the “sustainable” section here:

Although economic activity is likely to remain weak for a time, the Committee continues to anticipate anticipates that policy action to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption support a strengthening of sustainable economic growth. [My emphasis on sustainable]

Did the FOMC suddenly realize deficit spending is not a sustainable way to grow the economy? I’m pretty sure they already know this. Maybe they just looked back and realized how preposterous the statement was.

Here’s the whole comparison. I’ve always found dissection of Fed Statements kind of silly, but turns out it can be fun. Don’t knock it till you tried it, I guess. Anything else of interest?

sustainable-fed-statement