Fed lowers borrowing-cost trajectory despite projections

New York

IT'S the Fed that cried wolf.

After US central bank officials including chair Janet Yellen signalled for weeks that they expected to raise interest rates in coming months, backing previous forecasts that called for two increases this year, the Federal Reserve on Wednesday lowered its borrowing-cost trajectory. The revisions came even as projections for US economic growth and inflation were left little changed.

For investors who had already discounted the Fed's prior projections, the changes are an…