Fed Keeps Rates on Hold Amid 'Transitory' Growth Slowdown

The Federal Reserve decided to keep the interest rate unchanged, acknowledging a recent economic slowdown but viewing it as temporary. They noted a significant change in their inflation assessment, with inflation running close to their 2% objective despite a decline in core inflation. The slowdown is attributed to modest consumer spending, but the fundamentals for growth remain solid. The Fed did not provide hints on future policy moves or balance sheet policy, emphasizing a data-dependent approach for future decisions.

What decision did the Fed officials make regarding interest rates?

• They increased the rates.

• They decreased the rates.

• They kept the rates unchanged.

• They eliminated the rates.

What is the Fed's view on the recent economic slowdown?

• It is a permanent issue.

• It is an unsolvable problem.

• It is a temporary phase.

• It is a sign of recession.

How has inflation been performing according to the Fed's statement?

• It has been stagnant.

• It has been increasing rapidly.

• It has been running close to the 2% target.

• It has been decreasing significantly.

What factor did the Fed attribute to the growth slowdown?

• High unemployment rates.

• Modest consumer spending.

• Increased exports.

• Government policies.

What approach does the Fed emphasize for future policy decisions?

• A fixed approach.

• A flexible approach.

• An aggressive approach.

• A data-dependent approach.