The Federal Reserve believes reducing its bond purchases as the economy improves won't act as a drag on the economy. But getting fractious financial markets to fall in line with that view could be a struggle.

The Fed made clear Wednesday that it doesn't expect any great shakes from the economy. As the projections it released after its policy-setting meeting showed, Fed board members and bank presidents expect the economy to grow at a tepid pace through the remainder of the year. The unemployment rate is seen remaining too high and inflation is expected to run well below the 2% target the Fed has set for itself.