NEW YORK — Bank stocks led the market lower after the Federal Reserve cut its economic forecast and said unemployment could get worse.

The Fed's prediction yesterday that the jobless rate could approach 9.6 percent — worse than its previous forecast of 8.8 percent — was especially ominous for banks since that data is a component of the government's recent "stress tests" designed to determine a bank's health.

In other parts of the market, energy stocks surged as oil topped $62 a barrel for the first time since November, and Treasury prices rose smartly after the Fed said it might increase its purchases of government debt.