The Federal Reserve sent a stark message: The economy is slowing, and it won’t be raising interest rates anytime soon, the Associated Press reported. The Fed left its key short-term rate unchanged and projected no rate hikes this year, reflecting a dimmer view of the economy as growth weakens in the U.S. and abroad. The central bank said that it was keeping its benchmark rate in a range of 2.25 percent to 2.5 percent. It also announced that by September, it will no longer reduce its bond portfolio, a change intended to help keep long-term loan rates down. Combined, the moves signal no major increases in borrowing rates for consumers and businesses. Together with the Fed’s dimmer forecast for growth this year — 2.1 percent, down from a previous projection of 2.3 percent — the statement it issued after its latest policy meeting suggests it is grown more concerned about the economy. What’s more, with inflation remaining mild, the Fed feels no pressure to tighten credit. In predicting no rate increases for 2019, the Fed’s policymakers reduced their forecast from two that were previously predicted in December. They now project one rate hike in 2020 and none in 2021. The Fed had raised rates four times last year and a total of nine times since 2015. The Fed’s decision was approved on an 11-0 vote.
