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Shrugging Off Slow Growth, Fed Predicts a Rebound

New York Times (04/29/15) Binyamin Appelbaum; Nelson D. Schwartz

Following a two-day U.S. Federal Reserve meeting, officials are optimistic that growth will rebound and that the central bank is likely to raise its benchmark interest rate this year. However, inflation remains sluggish and price inflation is still below the 2% annual target, while wages have slowly risen. A statement from the Fed suggests that officials believe the economic setbacks are temporary, and they are hopeful that strong summer growth will offset a weak first quarter.