Federal Reserve officials left interest rates unchanged and saidthey still expect to raise borrowing costs at a “gradual” pacewhile watching to see how the global economy and markets impact theU.S. outlook.

The Federal Open Market Committee (FOMC) is “closely monitoringglobal economic and financial developments and is assessing theirimplications for the labor market and inflation, and for thebalance of risks to the outlook,” the central bank said in astatement Wednesday following a two-day meeting in Washington. TheFed omitted a line from the previous statement in December sayingthe risks to the outlook were “balanced.”

Since the Fedraised interest rates last month for the first time in almost adecade, turmoil in financial markets and a dimming of the outlookfor global growth have spurred investors to expect a slower rise inborrowing costs. The median projection of policy makers'forecasts in December called for four quarter-point rate increases in 2016; futures marketsindicated ahead of the FOMC statement that traders see just one ortwo hikes coming.