Previously used to describe a period of inflation below the Fed's 2% target, that term was now used to describe a weakening of the economy's performance during the first quarter, when the annualized rate of growth slowed to a three-year low of 0.7%.
According to The Financial Times, there is now a 94% chance of a rate increase at the June meeting, according to Fed fund futures, up from 67% before this month's decision.
After a two-day meeting, the Federal Open Market Committee has opted to keep the federal funds interest rate as-is-a surprise to many, given the widely held assumption that not one, but two more rate hikes were on the agenda for 2017.
Despite the slow growth in the first quarter of this year, the Fed noted that "job gains were solid" and "the unemployment rate declined".
Most economists have expressed optimism that the economy is strengthening in the current April-June quarter, fueled by job growth, higher consumer confidence and stock-market records. The markets initially expected the Fed to raise interest rates on Wednesday but have made a decision to hold due to the positive US employment data.
"If you look at how markets are positioned right now, it feels like hoping for the best but psychologically braced for a not so positive message (from the Fed)", said UBS Wealth Management analyst Geoffrey Yu, in London.
The Fed also said that inflation is "running close" to its 2 percent target, but that the measure that excludes volatile food and energy prices showed a pace "somewhat below" the target. Traders are awaiting U.S. non-farm payrolls for April, due out on Friday in the U.S. and expected to show the world's largest economy added 210,000 jobs last month, after a weaker-than-expected 98,000 in March.
The December 2016 hike was the central bank's first in a year, following a December 2015 hike that ended nearly a decade without rate increases.
The Federal Reserve has voted not to raise its key interest rate today, following hikes in December and March.
Interest rates remain at historically low levels.
The Fed also is watching whether President Donald Trump can push through Congress his initiatives on tax cuts and federal spending, which Mr. Trump seeks to bolster economic growth.
The minutes of the Fed's March meeting, which were released April 5, indicated that policymakers believed the time had almost come to begin shrinking the central bank's bloated balance sheet, which would act as a monetary tightening. Both observations suggest the Fed remains on course to approve two more rate hikes this year. A deflationary drop of 0,2% is the sharpest since the first quarter of 2015.
Then I'm going to go back and be a really good assistant golf club professional back in Burlington, Wisconsin'. The public is welcome.The locals and Dallas Cowboys fans follow Tony Romo after he hit his drive on No. 1.
Graham, a defense hawk who dined with Trump on Monday night, said North Korea should not underestimate the president's resolve. But with increasingly provocative statements and actions coming from North Korea, the emphasis is on military deterrence.
Malibu will appear on Cyrus' as-yet-untitled sixth album. "It's supposed to be this hot all summer long". Who Miley Cyrus is choosing to be at 24, post-rap and post-rock ( Dead Petz ), is the old Miley Cyrus .
Moon was a former presidential Chief of Staff who later ran against, and narrowly lost to, former president Park Geun-hye in 2012. His party advocates a policy of encouraging dialogue with North Korea while keeping up pressure through sanctions.
Reed said Wilson gave evasive answers during her confirmation hearing March 30, which "reluctantly led me to conclude, while Dr. She would be would be the first Air Force Academy graduate to serve as Air Force secretary if confirmed by the Senate.
It was bad when Dani Carvajal went down injured against Atletico Madrid , but it's gotten even worse for the Merengues. We played a fantastic first 30 minutes, had many chances for a second goal , but we did it in the second half.
Puerto Rico's situation is not dissimilar to Detroit's, which was the culmination of years of economic stagnation and bad policy. Prior to enactment of the legislation, Puerto Rico would have been barred from any bankruptcy filing as a U.S. territory.
Ubisoft also invites players to follow the Instagram profile of the company, using artwork taken right from Far Cry 3. We haven't seen a numbered Far Cry since Far Cry 4 in late 2014, with Far Cry Primal launching early a year ago .
The U.S. strategy in Afghanistan is to support the Afghan national security forces in the fight against the Taliban. Narcotics traffickers are giving terrorists weapons, money, and support to continue their insurgency.
Customers can call the same toll-free line or visit McDonalds.com to find the nearest participating McDonald's . The frork will come with the new sandwiches, which will debut in some fast food chain restaurants on Friday.
French ex-PM Valls wants to join Macron's movement
If Le Pen had won the election and France had exited the EU, that "could've led to the collapse of the union", the official said. Prime Minister Narendra Modi spoke to Emmanuel Macron, congratulating him on his victory in the French presidential election.
Trump brings in hope for solving Israeli-Palestine conflict
He made the trip to Washington while politically unpopular back home, with polls suggesting most Palestinians want him to resign. That could prose major domestic political headaches for Abbas, as he battles unpopularity and challenges from rival factions.
B.C. Liberals and NDP battle for indigenous vote
Interviewed by The Province's Mike Smyth, Higgins said she just wanted to make a point about housing prices and health firings. A new poll heading into the final week before the May 9 election - from the only pollster who predicted a B.C.
Tesla's Klaus Grohmann ousted after clash with CEO Musk
What we're sure of, however, is that Musk has no plans of developing flying cars because it's noisy, anxiety building, and risky . U.S. entrepreneur Elon Musk has outlined his vision for a tunnel network under Los Angeles and shown how it might work.
14-year-old cancer survivor to announce Ravens' 1st pick
And as of this writing, only the first round of the NFL Draft has taken place, so there's more for the Ravens to do. I think he kind of tries to let his play do the talking for him, and when you see the tape, that is what it does.