Wat Ben Said, and Wat It All Means For The Markets.

Ben: "The near-term pace of recovery to be 'fairly modest'."
Translation: Despite the first trillion dollars, the disconnect between the stock market and the economy persists.

Ben: "2011 growth is unlikely to be much above long-term trend."
Translation: Even with historic stimuli, we'll be lucky to get back to what was previously considered a normal recovery.

Ben: "Measures of underlying inflation are 'trending downward'."
Translation: We don't wanna say "deflation" -- it’s an admission of defeat -- so we'll dance around the topic and vaguely allude to it.

Ben: "Fed is ready to provide more accommodation if needed."
Translation: Engine room, more steam! We'll print moew money.

Ben: "Bulk of increase in unemployment is due to contraction."
Translation: Hey, it wasn't me!

Ben: "Inflation trends will be subdued for some time."
Translation: It's gonna be a long hard road.

Ben: "Pace of growth is less vigorous than we would like."
Translation: What’s the definition of hyper-inflation? Spend one trillion dollars while running to stand still.

Ben: "Labor market recovery is 'painfully slow'."
Translation: The velocity of money was critically damaged with the collapse of Fannie Mae and Freddie Mac.We are screwed!

Ben: "Risk of deflation is higher than desirable."
Translation: DAMN! Who let that word slip through the censors?

Ben: "Fed has less experience on the impact of asset purchases."
Translation: Your guess is as good as ours!

Ben: "FOMC will be able to tighten policy 'when warranted'."
Translation: Sorta like a slow pick-off toss to first base; you won't catch the runner, you just wanna keep him honest.

Ben: "See a case for 'further action' with too low inflation."
Translation: Don't push me 'cause I'm close to the... button.

Ben: "Fed could buy assets."
Translation: A classic case of post-rationalization but now I said it, so there!