Federal Reserve holds rates steady but signals possible hike before year’s end

Open markets committee says economic activity is expanding at a solid pace' in first meeting under new chair Kevin Warsh

US stock markets dropped Wednesday afternoon after the Federal Reserve left interest rates unchanged and signaled a possible rate hike before the end of the year.

The Fed was widely expected to keep rates at a range of 3.5% to 3.75%, where it has remained since December. The decision was unanimously supported by the Fed's voting committee.