The Federal Reserve on Wednesday said "economic growth slowed" since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target, a more dovish tone that suggests the bank won't be quick to raise interest rates again. "Inflation is expected to remain low in the near term," The Fed said in new, more cautious language. The central bank also alluded to stock market turmoil in the U.S. and China, saying it "is closely monitoring global economic and financial developments." Yet despite a more subdued near-term outlook, the Fed said it expects the economy to continue to grow "at a moderate pace," helped by a strengthening labor market. The vote was 10-0.
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