The United States Federal has cut its forecast for US economic growth in 2012 and extended its monetary stimulus programme.
The Fed slashed its estimates for US economic growth to a maximum of 2.4% down from a 2.9% projection in April.
Bank officials said they expected a US unemployment rate of up to 8.2% this year, having forecast up to 8% on 25 April, the BBC reports.
The bank also extended its programme of swapping short-term bonds for long-term ones, known as Operation Twist, until the end of the year.
The Fed said it would swap $US267 billion in US Treasury securities by the end of 2012. The programme had been set to end this month.
The idea of the programme is to cut the long-term cost of borrowing for businesses and households.
In a news conference, Federal Reserve chairman Ben Bernanke said unemployment was still too high and was going down too slowly.
Wall Street stock indices were down slightly at the end of a volatile day's trading on Wednesday.