The minimalist statement issued by the Fed at the conclusion of the FOMC meeting gave no hint that it was considering a further cut to the fed funds rate, at least not any time soon. As was almost universally expected, officials voted unanimously to leave the fed funds target range unchanged at 4.25% and 4.50%. The statement acknowledged that “uncertainty about the economic outlook has increased further” and that officials were worried about both “the risks of higher unemployment and higher inflation.” Despite the weakness in first-quarter GDP, economic activity was still described as expanding at a “solid” pace.
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