The Federal Reserve slashed its projection for gross domestic product, while raising its expectations for the unemployment rate, according to data released Wednesday.

The Fed now sees GDP central tendency to be 1.6% to 1.7% growth this year, down from its previous call for 2,7% to 2.9% growth this year, while slashing 2012 estimates to 2.5% to 2.9% from 3.3% to 3.7%, and cutting 2013 to 3.0% to 3.5% from 3.5% to 4.2%. GDP is seen growing 3.0% to 3.9% in 2014. The central tendency excludes the three highest and three lowest projections.

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