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 factors did the Fed attribute the growth slowdown to?

What does the Fed mean by being 'data dependent' in their future policy moves?