May 4, 2017 Comments Off on Fed Leaves Interest Rate Alone, For Now Views: 1163 National News, Top National Stories

Fed Leaves Interest Rate Alone, For Now

The benchmark interest rate remained unchanged, following the Federal Reserve’s two-day May meetings. The rate was left in a range between 0.75% and 1%, with the Fed on course to increase rates at least twice more this year.

The unemployment rate hit 4.5% in March, the lowest since 2007. That steady decline has led the Fed to increase interest rates as a countermeasure.

Fed officials say they aren’t worried about Q1 2017’s slower pace of growth, and believe any slowdown to be “transitory,” as they expect a rebound. The government estimates the economy’s annual growth rate was 0.7% in the first quarter, and prices are increasing slower than Fed officials like to see.

Still, the policy-making committee believes there’s a solid foundation, despite the unease. The bulk of economic activity remains in consumer spending, which has slowed recently. The Fed says solid fundamentals underpin expected continued growth.

Read more at NY Times


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