Fed: US slowdown in Q1 'likely to be transitory'

The Federal Reserve, led by chair Janet Yellen, said it viewed the slowdown in US GDP growth to 0.7% in Q1 "as likely to be transitory", raising investor expectations for a rate increase next month. It continues to expect that, with gradual adjustments in the stance of monetary policy, "economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilise around 2% over the medium term". Guy Stephens: The monetary sands are slowly shifting The Fed noted the employment market continues to strengthen "even as growth i...