Economics

Fed Sticks to Gradual Rate-Hike Approach Despite Slowdown

  • FOMC leaves rates unchanged, deems weak growth temporary
  • Unanimous vote in decision that keeps June hike option open
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U.S. central bankers stuck to their outlook for gradual monetary-policy tightening after they left interest rates unchanged and showed no alarm over recent economic weakness.

Federal Reserve officials were unusually explicit in their statementBloomberg Terminal, released Wednesday following a two-day meeting in Washington, indicating that a disappointing first quarter wouldn’t knock the committee off its path to raise rates two more times this year after a hike in March.