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 maintained its previously expected pace of rate cuts, but signaled higher inflation and a slowdown in economic growth for 2025.