Major US stock indexes fell sharply on Wednesday, the reason for which were the outcome of the Fed meeting.

As expected, the Fed raised the interest rate range to 2.25% -2.5% and signaled that a further increase in rates would be made at a slower rate. According to forecasts of the Central Bank, 11 out of 17 managers believe that the Fed will only need to increase rates two times next year, whereas only 7 of the 16 participants in the meeting adhered to this opinion in September. Only 6 executives believe the Fed should raise rates three times or more in 2019 against 9 executives in September. Meanwhile, the median forecast at the neutral rate was lowered to 2.75% from 3%. Thus, now the Fed is separated from this neutral level by only one rate increase. Fed officials also slightly lowered forecasts for GDP growth for the current year, to 3% from 3.1%, and for 2019, to 2.3% from 2.5%. The unemployment forecast was lowered to 4.4% from 4.5%, and the forecast for long-term GDP growth was raised to 1.9% from 1.8%.

Some attention was also attracted data on the US housing market. Housing sales in the secondary US market rose unexpectedly in November, but recorded the largest annual decline in the last 7.5 years, adding to other data that painted a grim picture of the housing market. The National Association of Realtors said that home sales on the secondary market increased by 1.9%, to a seasonally adjusted annual rate of 5.32 million units. The October sales rate was 5.22 million units. Economists had forecast that sales of homes on the secondary market would fall by 0.6%, to 5.20 million units.

In annual terms, sales in the secondary market, which account for about 90% of US home sales, fell by 7.0% in November, which was the largest annual decline since May 2011. Meanwhile, sales fell by 2.3% in the first 11 months of this year compared with the same period last year.

Almost all DOW components recorded a decline (27 of 30). Intel Corporation (INTC, -4.28%) turned out to be an outsider. The growth leader was Verizon Communications Inc. (VZ, + 0.52%).

All sectors of the S & P finished trading in the red. The service sector fell the most (-1.8%).

At the time of closing:

Dow 23,323.66 -351.98 -1.49%

S & P 500 2,506.96 -39.20 -1.54%

Nasdaq 100 6,636.83 -147.08  -2.17%