The FOMC meeting statement for the March 19-20 deliberations was slightly more downbeat in its assessment of economic conditions, but certainly nothing to suggest that the economy has done more than “slowed from its solid rate” while the labor market “remains strong” and that job gains are “solid”. The Committee noted “Recent indicators point to slower growth of household spending and business fixed investment in the first quarter”. Overall inflation “has declined, largely as a result of lower energy prices” while core inflation “remains near 2%”. There has been “little change” in inflation expectations.
Otherwise, the FOMC statement was unchanged from the January version.
The FOMC remains “patient” and the outlook for future rate moves dependent on the economic data and “readings on financial and international developments.”
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