Fed: Economic growth slowed due to ‘transitory factors’; rates stay near zero

As expected, the Federal Reserve decided to keep its interest rates near zero and acknowledged what was evident in Wednesday’s disappointing GDP report: “economic growth slowed during the winter months.”

But the Fed said this slowdown “in part reflected transitory factors,” so it doesn’t seem too worried about 0.2 percent economic growth in the first quarter.

Given the Fed’s dual mandate of maximum employment and price stability, however, it appears the Fed is in no hurry to end its… …read more