In this file photo The Federal Reserve building is seen on June 17, 2020 in Washington, DC. (Photo:Agencies)

WASHINGTON - The Federal Reserve on Wednesday recognized rising inflation but again said it is due largely to "transitory" factors, and affirmed that the central bank is ready to act if needed.

Fed officials raised their median forecast for inflation this year to 3.4 percent from 2.4 percent in March, and boosted the growth outlook to 7.0 percent from 6.5 percent. They now expect the first hike in the benchmark interest rate in 2023.

While the economy and employment have strengthened, "risks to the economic outlook remain," the Fed's policy-setting Federal Open Market Committee said in a statement following a two-day policy meeting.