It now predicts an even more disappointing only 1.9 percent growth in 2020.
While the central bank is very close to its twin goals of low and stable inflation and full employment, Chairman Jerome Powell and his colleagues must contend with risks from overseas, including slowing growth in Europe and China and possible spillovers from Britain's exit from the European Union.
Also in December, Fed officials had indicated there would be two 0.25-percentage-point hikes this year in the short-term federal funds rate, a benchmark for credit cards, auto loans and other short-term consumer lending. Some analysts believe the next rate move could be a cut later this year if the economy slows as much as some fear it might.
That more pessimistic outlook is likely the main reason that the Fed forecast zero interest rate hikes this year, a sharp change in their outlook from just three months ago when they projected two hikes.
USA manufacturing output fell for a second straight month in February and factory activity in NY state hit almost a two-year low this month, offering further evidence of a sharp slowdown in economic growth early in the first quarter.
Oil prices were firm, supported by supply cuts led by producer club OPEC as well as US sanctions against Iran and Venezuela, though gains were limited by concerns over global economic growth.
Economic growth "has slowed from its solid rate in the fourth quarter", the FOMC said in its statement.
In recent months, Powell and the Fed have appeared to take a more dovish approach to interest rates amid concerns about slowing global growth - a result of a more than year-long trade war between the US and China and uncertainties about Brexit.
That could become more apparent Wednesday afternoon, when the Federal Reserve is widely expected to hold interest rates steady.
EPL: Abramovich ready to sell Hazard to Real Madrid
The Belgium captain has gone on to win two Premier League titles, the Europa League and the FA Cup with the Stamford Bridge. I don't think so. "I like to talk about the future because that's what matters, I don't like to talk about the past".
The Dow Jones Industrial Average rose 56.75 points, or 0.22 percent, to 25,970.85, the S&P 500 gained 8.19 points, or 0.29 percent, to 2,841.13 and the Nasdaq Composite added 34.95 points, or 0.45 percent, to 7,749.43.
The Euro STOXX 600 fell 0.3 per cent, with indexes in Britain and France also slightly down as investors closed positions before the Fed's decision, due at 1800 GMT. Bonds rallied, too, driving yields sharply lower in the wake of the Fed's unexpected capituation.
The yield on the 10-year Treasury note dropped to 2.53 per cent.
Stock markets are subdued ahead of a monetary policy statement by the U.S. Federal Reserve in which the central bank is expected to say it will be patient about raising interest rates further.
The Japanese yen strengthened 0.03 percent versus the greenback at 111.40 per dollar.
As it stands, the Fed, which raised rates seven times over the 2017-2018 period, is approaching a stopping point of 2.6 percent for its fed funds rate, which would leave it well below historic norms. Most analysts think the policymakers will scale back their projection of rate hikes this year from two to one or perhaps even none.
The Fed is set to keep its key short-term rate in a range of 2.25 percent to 2.5 percent, still low by historical standards. "The fact that the Fed threw in the towel on a 2019 rate hike was particularly dovish".
The central bank's new embrace of patience and flexibility reflects its calming response since the start of the year to slow growth at home and overseas, a nervous stock market and persistently mild inflation.
Another feature common in third-party headphones today that highlights how needed an update of the AidPods was. Also on board: "Siri summoned just by saying 'Hey Siri!' and longer battery life with '50% more talk time".
Erdogan told supporters: "If New Zealand fails to hold the attacker accountable, one way or another we will hold him to account". The New Zealand Muslim community rejected extremeness, violence and hate - no matter where it came from, she said.
Almost 1400 people were employed at the Lordstown GM plant, but only 400 of those workers have accepted transfers to other plants. It's safe to assume Donald Trump later talked to GM CEO Mary Barra about the issue, because on Sunday he took to Twitter again.
Former prime minister Tony Abbott has denounced Senator Fraser Anning's "lunatic" comments over the Christchurch terror attack. Anning immediately turns and hits the teen in the face, and then hits him again before the two were separated.
In a recent interview with Stephen Colbert, the actor said: "I've got this theory we kind of screwed the political landscape. I had to feel very grateful for what I have, but I felt incredibly concerned about whether I could even fucking act".
Priyanka Chopra recently joined the women of The View to promote her upcoming YouTube special, If I Could Tell You Just One Thing. I was like, 'Listen, you're from a good southern home, you're used to your mom making you awesome food.
They removed "40 kilos of plastic bags, including 16 rice sacks, 4 banana plantation style bags and multiple shopping bags". Experts estimate that around 300 marine animals such as whales , sea turtles and dolphins, die after swallowing plastic.
They also claimed their adoptive mother abused them whenever they forgot their lines or didn't participate as instructed. The Department of Child Services has removed all seven children from Machelle Hackney's care, according to NBC News .
Most excellent news for supporters of the "everything old is new again" trend in Hollywood: Bill and Ted are making a new movie. Both Reeves and Winter have had busy careers since Bill & Ted. "We want to say thank you to you, the fans", says Reeve.
The authors of this study found that drinking 4 or more artificially-sweetened beverages a day also upped women's odds of dying. Chan School of Public Health tells CNBC , noting that the results fit into wider findings about the harm of sweet drinks.
Cuphead for Nintendo Switch Announced, Release Date Confirmed
Nintendo hasn't shared any further details about this week's Nindies Showcase, so we don't yet know what games will be featured. We'll be working with StudioMDHR to implement Xbox Live features into Cuphead on the Nintendo Switch in the coming months.
Revellers mark Holi, the festival of colours
Indian festivals are meant to bring everyone together, to enjoy our rich culture and bring positivity in our lives. We greet them with candies and colours and wish that they get all that they want from life and more.
Patriots owner Robert Kraft will not accept deal
Kraft, who has denied through a spokesman that he committed a crime, has been charged with two counts of solicitation. The spa had been under police surveillance since late past year over concerns of human trafficking and prostitution.
Netflix Debuts "Stranger Things 3" Trailer
Netflix has unveiled the first full trailer for the upcoming third series of Stranger Things . Stranger Things , created by Ross and Matt Duffer, first premiered in 2016.
Rams sign Clay Matthews to 2-year deal
Free agent linebacker Clay Matthews has agreed to a two-year deal with the Los Angeles Rams , the team announced on Tuesday . Matthews, 32, spent a decade with the Packers after being selected with the 26th pick in the 2009 NFL Draft.
Worldpay takeover creates electronic payments giant
Traders purchased shares of Fidelity National Information Servcs Inc (NYSE: FIS ) on weakness during trading hours on Monday. Worldpay Inc. shareholders will receive 0.9287 FIS shares and $11.00 in cash for each Worldpay share they own.