Fed leaves key rate unchanged, points to slowing economy

Federal Reserve officials left interest rates unchanged but downgraded their view of the US economy, a sign policymakers could be edging closer to lowering borrowing costs. “Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year,” officials said in a post-meeting statement. The Fed had previously characterized growth as expanding “at a solid pace.”