6 charts illustrate why the Fed is willing to overlook the economy's ugly quarter
Charles Rex Arbogast/AP
Its policy statement on Wednesday said the Federal Open Markets Committee "views the slowing in growth during the first quarter as likely to be transitory."
The advance release of first-quarter gross domestic product showed the economy grew by 0.7%, its slowest pace in three years. The increase in consumer spending, the largest contributor to growth, was at the lowest since 2009, at 0.3%.
"Household spending rose only modestly, but the fundamentals underpinning the continued growth of consumption remained solid," the statement added.
According to the Fed, near-term risks to the economy are "roughly balanced," meaning extended weakness is possible. However, these charts show why the Fed considers the first-quarter slowdown as temporary:
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