FOMC statement

The Federal Reserve now says the U.S. unemployment rate could fall to as low as 6.5% by 2014 instead of 2015 as previously estimated, according to the bank's latest economic forecast. 

The Fed has said it would keep interest rates close to zero so long as the jobless rate was above 6.5%. 

In a more upbeat forecast issued Wednesday, the Fed also said it still sees growth north of 3% in 2014 and 2015. 

The Fed forecast, meanwhile, expects the slowdown in inflation this year to be temporary. 

Fed officials trimmed their inflation forecast, as expected, for 2013 but kept their estimates for 2014 and 2015 steady at 2% or less. 

Despite the improved outlook on unemployment, 14 Fed members expect the first rate hike in 2015. 

One Fed official changed his prediction for the first hike from 2014 to 2015. 

The unemployment rate is projected by the Fed to decline from the current level of 7.6% to a range of 6.5% to 6.8% in 2014. 

The rate could fall below 6% by 2015, the forecast shows.