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

Kevin Warsh speaks to reporters after the meeting on Wednesday. Photograph: Will Oliver/EPA

US stock markets dropped on 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 they have remained since December. The decision was unanimously supported by the Fed’s voting committee.