The Federal Reserve continued to reduce its monthly bond-buying program and held interest rates near zero even as it debated persistent conflicting signals in the economy.
In addition to continuing the scaleback of its monthly money-printing efforts, the Fed slashed its outlook for full-year economic growth, cutting gross domestic product from a 2.8 percent to 3 percent range expressed in March down to 2.1 percent to 2.3 percent. The change comes on the heels of a 1 percent drop in first-quarter GDP.
It also modestly lowered its unemployment rate expectations, from 6.1 percent to 6.3 percent—its current level—down to 6.0 to 6.1 percent. Inflation projections remained relatively stable, from 1.5 percent to 1.6 percent, adjusting it just a notich to 1.5 percent to 1.7 percent.
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