Economic history from 2006, 2007, and 2008

On May 10, 2006, the Fed said the following in a press release:

"The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market ... "

So they raised the interest rates for fed funds to 5 percent.

"As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check ... "

So does that mean, "Wages have stayed the same while electric bills, gas bills, water bills, and gasoline at the pump have gone up with the net effect being only a modest amount of price increases in meat, vegetables, and bread?"

"The Committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook ..."

"So that means, "Things are going well. We don't expect any changes unless we have to raise your mortgage rates again."

All in May of 2006, before the global economic meltdown blind sided the smartest Bankers in the USA.