In its latest quarterly economic projections, the Fed lowered its growth outlook for 2024 and 2025, forecasting a slower economy than it projected three months ago. The central bank also expects the unemployment rate to rise to 4.4 percent and inflation to edge up to 2.7 percent by year's end—both exceeding its 2 percent target.

The Federal Reserve kept its benchmark interest rate unchanged Wednesday and signaled that it still expects to cut rates twice this year, though it said the outlook is more uncertain.