The Federal Reserve holds interest rates steady as new economic shocks play out.

• Federal Reserve holds interest rates steady at 3.5% to 3.75%.
• Officials' projections for rate cuts in the current year are more hawkish than previously, with a split among policymakers on the number of cuts.
• Inflation outlook revised higher to 2.7% for both headline and core, up from previous estimates.
• Market indices (DOW, S&P 500, NASDAQ) showed declines following the announcement.

The Federal Reserve held interest rates steady at 3.5% to 3.75%, but officials' outlook for rate cuts became more hawkish, with a split decision on the number of cuts for the year. The inflation outlook was also revised higher, indicating persistent inflationary pressures. The market reacted negatively to the news.