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The Fed has reduced its GDP outlook to 2.1 percent in 2019 from 2.3 percent in December.
This reduced estimate came from the fact that the Federal Procurement Committee, which took decisions, decided to keep the federal funds policy rate in the range of 2.25% to 2.5%.
In its statement after the meeting, the committee called the labor market "strong" but said that "growth in economic activity has slowed down", has turned around since January, when the FOMC had declared that "the activity had increased at a steady pace".
Powell said that Fed members continue to believe that the basic situation in the United States is good.
"Our outlook is positive, and FOMC participants continue to grow about 2%, slightly below last year's end," he said. "This is partly because the underlying economic fundamentals are still very strong, with most measures showing strong labor markets, rising incomes and very low unemployment."
This is a story in development. Please check here for updates.
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