THE FEDERAL RESERVE ANNOUNCE A QUARTER -POINT RATE HIKE

Fed hikes interest rates despite declining inflation, sets plan for balance sheet reduction

• The Federal Reserve announced a quarter-point rate hike Wednesday as expected.
• The central bank last increased its benchmark rate in March.
• It now believes inflation will fall well short of its 2 percent target this year.
• The statement gave more detail on how it will unwind its $4.5 trillion balance sheet.