Federal Reserve less upbeat on US outlook

The Federal Reserve kept interest rates unchanged yesterday but signalled it plans two rate increases this year, saying it expects the US job market to strengthen after a recent slowdown.

The US central bank, however, lowered its economic growth forecasts for 2016 and 2017 and indicated it would be less aggressive in tightening monetary policy after the end of this year.

Fed policymakers gave no indication of when they might raise rates, though their projections leave the door open to an increase next month.