Stocks fell Wednesday after the Federal Reserve added a third rate hike to its 2019 plans, reflecting views that inflation is beginning to pick up.

The Dow Jones Industrial Average dropped 44.96 points, 0.18%, to 24,682 in recent trading. The S&P 500 fell 5.01 points to 2,711.93. The Nasdaq Composite was down 19.02 points at 7,345.29.

The Federal Reserve raised its benchmark interest rate and maintained its stance for three rate hikes in 2018, partly easing concerns that the central bank would tighten policy at a faster pace than expected. The Fed said it is looking for three more rate hikes in 2019, up from its previous plan to raise rates two times.

“We suspect the Fed is leaning on the mixed inflation data in wages along with the escalating risks of a trade war to buy some time before making material changes to their rate forecast,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “Looking beyond 2018, it appears the Fed truly believes most of the fiscal stimulus will be felt next year.”

The Fed expects unemployment to fall from the current 4.1% to 3.8% this year, declining further in 2019 to 3.6%.

The rate hike was widely expected ahead of the meeting. This was the Fed’s sixth rate hike since December 2015.

Stocks reacted positively to the Fed’s initially statement before dropping into negative territory when...read more at FOX Business