“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the Fed said in its statement. “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”

Uncertainty about tariffs and inflation appear to be taking their toll on the economy. Members of the Federal Reserve’s monetary-policy committee lowered their projections for annualized growth in America’s gross domestic product to just 1.

The Federal Reserve downgraded its projections for U.S. economic performance this year, along with several primary economic indicators. The U.S. central bank sees lower economic growth, higher unemployment and higher prices amid major changes in U.