The FOMC added to those already forecasting a recession late this year.

The sky is falling! That is the conclusion reached by investors last week. The FOMC lowered its growth expectations for the U.S. economy from what had already been a weak forecast at prior meetings. The Fed also removed any guidance for further changes in monetary policy this year. They cited a slowdown in spending by both consumers and businesses as the reason to remove any guidance for the two rate increases they had been indicating prior to the meeting last week. The Fed had been indicating they believed they would execute three rate increases in 2019 as recently as last December.

 

PROBANK AUSTIN ADVISOR - MARCH 25, 2019