The Federal Reserve’s decision in March to cease raising interest rates this year was driven by unease over the U.S. and global economies and surprisingly subdued inflation, according to minutes of the pivotal central bank meeting.
Last month the Fed junked previous plans to raise a key short-term U.S. interest twice more this year. Instead, Chairman Jerome Powell reiterated the Fed would remain “patient” and its closely watched “dot plot” pointed to no increases in interest rates for 2019.
On the Fed’s list of worries: Sluggish U.S. growth early in the new year, a weaker global economy, the messy attempt by the U.K. to leave the European Union and festering trade tensions between the Trump administration in China.
What the Fed wasn’t worried about was rising inflation.