WASHINGTON, The Federal Reserve expressed growing concern about slowing down financial growth as it left rates of interest unchanged on Wednesday and showed little desire for increasing them in the near future. The Fed’s fairly downbeat economic evaluation is at odds with the White House’s rosy economic projections, that have continued to forecast stronger growth compared to most other forecasters state is probable. The Fed, in a statement at the end of its day policy meeting, stated expansion of economic activity has slowed from its solid rate in the fourth quarter and mentioned slowdown in household spending and business fixed investment.
Fed officials currently expect financial growth of 2.1 percent for 2019 down from the 2.3 percent it forecast in December. The White House insists expansion will be much stronger: 3.2 percent this year and 3% next year. The difference between Fed anticipation for yearly expansion and the White House forecast has not been broader, in the decade since the recession ended. After increasing prices For five successive quarters, the Fed signaled it sees no further need to lift them in the near future. Forecasting data released in the conclusion Of the two-day meeting show the typical member of the Federal Open Market Committee now expects to not raise rates at this season, an abrupt halt to what was a constant march of rate increases to the present range of 2.25 to 2.5 percent.
The typical member expects one rate increase in 2020 and none in 2021. That’s a sharp decline from what officials voiced In December, the last time forecasts were released. Then, Fed officials said they expected two rate increases this year and another in 2020. Fed Chairman Jerome H. Powell, speaking at a news conference following the meeting, said the Fed expects the economics to grow at a good rate, in 2019, but it’ll be slower compared to last year’s rapid acceleration. Mr. Powell said that data coming since December imply that expansion is slowing down somewhat more than expected. Mr. Powell didn’t eliminate the possibility, based on the present condition of the economics, the Fed’s next move might be a rate cut. The data aren’t currently sending a sign that we need to move in one direction or another, He said.