WATCH: Powell holds news briefing as Fed keeps its key rate unchanged

WASHINGTON (AP) — Federal Reserve officials expect inflation to worsen in the coming months but they still foresee two interest rate cuts by the end of this year, the same as they projected in March.

Watch Federal Reserve Chair Jerome Powell's remarks in the player above.

The Fed kept its key rate unchanged for the fourth straight meeting Wednesday, and said the economy is expanding at "a solid pace." Changes to the Fed's rate typically — though not always — influence borrowing costs for mortgages, auto loans, credit cards, and business loans.#PowellRemarks