The Federal Reserve has slightly reduced its outlook for the U.S. economic growth for 2012, but is somewhat more optimistic about the unemployment rate.

The Federal Reserve expects the economy to grow between 2.2 percent and 2.7 percent in 2012, down from November’s forecast of between 2.5 percent and 2.9 percent, according to its updated economic forecast released Wednesday.

It does not plan to raise its benchmark interest rate until late 2014, while acknowledging the sluggish, but growing economy.

Further, it projects the unemployment to fall below December’s 8.5 percent to 8.2 percent. A target for unemployment was not specified by the Fed, but said that unemployment between 5.2 percent and 6 percent would be consistent with its goal for a strong economy.