Officials raise forecast for price growth, estimating that inflation will increase at average rate of 2.7% this year

Officials at the US Federal Reserve cut their US economic growth forecasts and raised their projections for price growth as they kept interest rates on hold while Donald Trump bids to overhaul the global economy with sweeping tariffs.

Policymakers at the central bank expect inflation to increase by an average rate of 2.7% this year, according to projections released on Wednesday, up from a previous estimate of 2.5%.