Prices are now projected to rise faster than expected at least in part and perhaps largely due to Trump's plans to levy duties on imports from U.S. trading partners, Fed Chair Powell said.

U.S. stock futures are pointing to a lower open after the Federal Reserve on Wednesday indicated two more rate cuts this year.

The US central bank has cut its growth forecast as it warned President Donald Trump's tariffs were "clearly" driving up prices. The Federal Reserve released its projections for the world's largest economy on Wednesday while keeping interest rates unchanged again,