Fed downgrades outlook

As expected, the central bank kept interest rates unchanged. But more significantly, the Fed tempered its view of the U.S. economy, indicating that rates could remain at a record low until next year. From the WSJ:

Fed officials gave a more sobering assessment of the jobs market compared to the April meeting, when they said it was "beginning to improve." This time, they said the market was "improving gradually."

That small word change might not seem like a big deal, but in Fed speak it points to a less encouraging outlook.