US Fed to Keep Interest Rates Unmoved Amid Slower Growth

By: Yassmine ElSayed

CAIRO, Mar. 22 (SEE) - US Federal Reserve will not be willing to raise interest rates for the rest of 2019 amid slower economic growth.

After a two-day meeting, monetary policymakers voted unanimously to keep the US interest rate range between 2.25%-2.5%, as they changed their outlook for 2019 from the two increases predicted in December to stagnant.

The central bank warned that "growth of economic activity has slowed from its solid rate in the fourth quarter".

It said: "Recent indicators point to slower growth of household spending and business fixed investment in the first quarter."

Federal Reserve Chairman Jerome Powell said that there was a positive outlook for the rest of the year, with unemployment rate under 4% and inflation below the central bank's 2% target. But "we are also very mindful of what the risks are", which include slower global growth and no resolution on either Brexit or US-China trade talks.

The Fed also said that it will slow the monthly reduction of US Treasury bonds it holds from $30bn to $15bn from May onwards ending in September.

During the financial crisis, the Fed spent heavily to help kick-start the US economy.

It has been reducing its a $4.2 trillion portfolio of US Treasury bonds and mortgage-backed securities since 2017.