Federal Reserve expresses concern about U.S. economy and signals inter

Washington Post logoTrump has urged the central bank to take such action for months.

The Federal Reserve on Wednesday raised concerns the economy is slowing and sent its strongest signal to date that it could act soon to cut interest rates, a move that would plunge the central bank into unusual territory.

Business investment is slowing, uncertainty has increased and the U.S. economy is growing at a “moderate” pace, the Fed said Wednesday in its official policy statement, a notable downgrade from last month, when the central bank characterized the economy as “solid.”

The Fed did not cut rates Wednesday and did not specify exactly when it would. But nearly half of Fed leaders now predict rates will fall by the end of the year, a significant change from March, when none of the 17 Fed policymakers anticipated a cut this year. Seven of the 17 are forecasting two rate decreases by the end of 2019, according to projections also released Wednesday.

View the complete June 19 article by Heather Long on The Washington Post website here.