The Federal Reserve has stuck to its forecast for an initial interest rate rise in 2015 but cut its forecast for US growth slightly.
Holding to its cautious dovish stance on inflation, the Federal Open Market Committee on Wednesday did not change any language it uses to signal its rate plans, saying any increase will happen only a "considerable time" after the October end to the bond-buying stimulus program.
Although the economy continues to expand "at a moderate pace", the monetary policy makers saw growth next year at just 2.6-3.0 per cent, slower than the 3.0-3.2 per cent level they forecast three months ago.
But they improved their outlook for unemployment, saying the jobless rate will fall from the current 6.1 per cent to 5.4-5.6 per cent by the end of next year, slightly better than the previous outlook.
Meanwhile, the FOMC stuck to its plan to wind up the quantitative easing program, buying up bonds to inject money into the economy and to keep long-term interest rates low.
The program, which was $US85 billion ($A92 billion) a month in December 2013, has been reduced steadily and will be ended in October, if current trends in the economy do not change, the FOMC said.
The FOMC's two-day meeting had been expected to review whether the Fed should alter its outlook for an increase in the 0-0.25 per cent federal funds interest rate, expected for the middle of next year or later.
So-called inflation hawks were pushing for the FOMC to allow for a much earlier rate hike in their language, including eliminating the "considerable time" phrase.
Two FOMC members, both known hawks, voted against the policy statement, one arguing that the phrase binds the Fed's hand on policy, and the other that the economy is improving and that the ultra-low rate policy, in place for nearly six years, is helping pump up stocks and other assets to unreasonable levels.
Behind the meeting was the debate over whether the labour market needs continued support from ultra-low rates, and whether that risks an outbreak of inflation, which has increasingly dominated monetary policy discussion this year.
The unemployment rate has fallen faster than the FOMC has expected, losing two full percentage points in two years to the current 6.1 per cent.
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