Fed Sees U.S. Economy Accelerating After Slump in First Quarter

Federal Reserve policy makers said they expect the economy to pick up after growth ground to a virtual halt in the first quarter, suggesting they are still open to an interest-rate increase later in the year.

The Federal Open Market Committee “continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace,” the panel said in a statement Wednesday in Washington. The slowdown partly reflected “transitory factors,” it said.