Even while pressure mounts to taper its asset purchases, the central bank will continue its accommodative quantitative easing.
This was a significant increase from the 2.4% officials were predicting in March.
Fed Chair Jerome Powell's challenge is to convince traders he's got the resolve to respond to runaway inflation, without actually doing anything.
The question is whether Powell will allow bond yields to keep rising or if the Fed will step in to ward off any unwanted market reaction.
The U.S. central bank said interest rates will remain close to zero.
When FOMC minutes suggested the Federal Reserve might not employ yield curve control, the markets reacted angrily.
The Federal Reserve said Wednesday it would hold benchmark U.S. interest rates close to zero and continue buying Treasury bonds to support the coronavirus-devastated economy.