Federal Reserve blames 'transitory factors' for US economic slowdown

• Annual growth rate falls to 0.2% in first quarter of 2015
• Statement leaves open possibility of raising interest rates

"Transitory factors" are to blame for the recent slowdown on the US economy, the Federal Reserve said on Wednesday.

In a statement released after the latest two-day meeting the Federal Open Markets Committee (FOMC) the central bank brushed off recent bad news and left open the possibility of raising interest rates, a hike that would be the first in almost a decade.

Related: Federal Reserve officials divided on whether to raise interest rates