“Although growth in output and unemployment slowed during the first quarter, the committee continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace,” the Fed said.The Fed repeated it will raise rates when it sees further labor-market improvement and is “reasonably confident” inflation will move back to its 2 percent goal over time. The decision was unanimous.
“Inflation is anticipated to remain near its recent low level in the near term, but the committee expects inflation to rise gradually toward 2 percent over the medium term,” the FOMC said. After the statement USD added few points but remains broadly lower against its major rivals. Euro is currently being traded around 1.11 handle, Sterling is few points above 1.5420 level, while Aussie is around 0.8020 area.
