Fed holds interest rates steady, forseeing less growth and higher inflation ahead

Fed policymakers said risks had increased, with a near unanimous sentiment in saying the outlook for the year was muddled.

The Federal Reserve held interest rates steady on Wednesday, as expected, but U.S. central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and, eventually, a downturn in inflation.