Many Americans are still struggling to find good jobs, while the sluggish pace of inflation suggests that the economy still has room to grow more quickly without setting off alarm bells that prices will escalate beyond a comfortable level. The Fed acknowledged in its statement that growth had “moderated somewhat” in recent months, and that inflation had sagged even further below its 2 percent target, a level most economists consider appropriate to a healthy economy.

There are also growing concerns that the stronger dollar, which has been rising partly on expectations that the Fed will raise rates while other central banks are cutting them, will hurt American exports and reduce corporate investment. The rise of the dollar also appears to be worsening the weakness of inflation. Low inflation is a sign of economic weakness and can also be a cause of it, for example, by making it harder to repay debts.

The forecasts published by the Fed showed that 15 of the 17 members of the policy-making committee expect to raise the Fed’s benchmark rate this year. Those projections showed that on average they expect two increases, to roughly 0.75 percent. The Fed has held short-term rates near zero since December 2008.

“I think some of the headwinds that have long been holding the economy back are beginning to recede,” Ms. Yellen said at her news conference. Monetary policy exerts a gradual influence on economic conditions, so the Fed must anticipate the trajectory of growth when it makes policy. Ms. Yellen said officials were inclined to raise rates because they expected continued improvement in the labor market and a rebound in inflation that would move it closer to its desirable level.

In place of its recent promise to remain “patient” in deciding when to start raising rates, the committee’s statement said that the Fed would act “when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”