Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year.

"This change highlights that the committee expects the labor market to remain strong, with sustained job creation, ample opportunities for workers, and rising wages," Chair Janet Yellen told reporters Wednesday in Washington following the decision. In her final scheduled press conference before stepping down on Feb. 3, Yellen also said she would do her utmost to ensure a smooth transition to her nominated successor, Jerome Powell.

In a key change to its statement announcing the decision, the Federal Open Market Committee omitted prior language saying it expected the labor market would strengthen further. Instead, Wednesday's missive said monetary policy would help the labor market "remain strong." That suggests Fed officials expect improvement in the job market to slow.