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| Version 1 | Version 2 |
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| US central bank cuts growth forecast for 2014 | US central bank cuts growth forecast for 2014 |
| (35 minutes later) | |
| The US Federal Reserve has cut its growth forecast for 2014 due to the harsh winter weather. | The US Federal Reserve has cut its growth forecast for 2014 due to the harsh winter weather. |
| The central bank is now predicting growth of between 2.1% and 2.3% for this year, down from its March forecast of 2.8% to 3%. | The central bank is now predicting growth of between 2.1% and 2.3% for this year, down from its March forecast of 2.8% to 3%. |
| However in its accompanying statement, the bank said that economic activity had "rebounded in recent months". | However in its accompanying statement, the bank said that economic activity had "rebounded in recent months". |
| As expected, it has also trimmed back its stimulus programme by $10bn a month to $35bn. | As expected, it has also trimmed back its stimulus programme by $10bn a month to $35bn. |
| The central bank has been buying bonds to keep long-term interest rates low and encourage banks to lend. | The central bank has been buying bonds to keep long-term interest rates low and encourage banks to lend. |
| This is the fifth cut in purchases since December and it is expected to stop buying bonds altogether by the autumn. | This is the fifth cut in purchases since December and it is expected to stop buying bonds altogether by the autumn. |
| However the chair of the bank, Janet Yellen, stressed that this was not a pre-set programme and if necessary it would change course. | |
| As far as interest rates go, the bank said they would remain near zero "for a considerable time" after the bond buying ends. | |
| On inflation, Ms Yellen said she expected it to remain at or below the target of 2% until the end of 2016. Low inflation would enable the bank to keep interest rates low. Currently, they are not expected to rise until the middle of 2015. | |
| 'Steady as she goes' | |
| The Federal Reserve expects growth to pick up again in 2015, sticking to its prediction of 3% to 3.2% expansion. | |
| "Economic activity will expand at a moderate pace and labor market conditions will continue to improve gradually," the central bank said. | "Economic activity will expand at a moderate pace and labor market conditions will continue to improve gradually," the central bank said. |
| "Household spending appears to be rising moderately and business fixed investment resumed its advance." | "Household spending appears to be rising moderately and business fixed investment resumed its advance." |
| Ms Yellen added in a press conference afterwards that "over the next two years, the projections for real GDP growth remain somewhat above the estimates of longer-run normal growth." | |
| Kim Rupert from Action Economics in San Francisco said: "Steady as she goes, with respect to policy. [They] want to make sure the recovery is for real and is in place and are still maintaining a very accommodative posture." |