Fed Leaves Rates Unchanged, Calls 1st-quarter Weakness 'transitory'

By Jeffry Bartash Markets MarketWatch Pulse

The Federal Reserve on Wednesday voted 9-0 to leave its benchmark interest rate at 0.75% to 1%, but the FOMC also indicated it's still on track for two more rate increases in 2017. The Fed said the sharp slowdown in first-quarter GDP resulting from a falloff in consumer spending is "likely to be transitory." The central bank also said "the fundamentals underpinning the continued growth of consumption remain solid."

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