Fed projects funds rate at 1.25% by end of 2015
- projects funds rate at 2.5% by end of 2016
- trims long-range rate forecast to 3.75% vs 4%
- reduce bond-buying to $35 billion a month
- reduction in bond purchases to start in July
- slashes 2014 GDP estimate to 2.1% to 2.3%
- says economy 'has rebounded in recent months'
- projects 2015 U.S. growth at 3% to 3.2%
- estimates 2016 growth at 2.5% to 3%
- sees unemployment falling touch faster from 2014-2016