Fed cuts outlook, keeps interest rate unchanged

WASHINGTON, D.C.: The Federal Reserve cut its outlook for the US economy and kept its interest rate policy unchanged on Wednesday (Thursday in Manila), citing the impact of the global slowdown and turmoil in world markets.

Giving a picture of the US economy less bullish than many had expected, the Fed still forecast continuing hikes to the federal funds rate this year, but at a slower pace than foreseen in December.