Fed Keeps Rates on Hold as Slowdown in Growth Seen Temporary

  • Fundamentals underpinning consumption growth stayed ‘solid’
  • Unamious vote in decision that keeps June hike option open

Fed Acknowledges 'Transitory' Growth Slowdown

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Federal Reserve officials remained on track to gradually tighten monetary policy after leaving interest rates unchanged and signaling they were not alarmed by recent U.S. economic weakness.

“The committee views the slowing in growth during the first quarter as likely to be transitory,” the Federal Open Market Committee said in a statementBloomberg Terminal Wednesday following a two-day meeting in Washington. “Near-term risks to the economic outlook appear roughly balanced.”