Stocks rose steadily on Wall Street Wednesday after the Federal Reserve said it would accelerate its pullback of economic stimulus and would likely raise interest rates three times next year to tackle rising inflation.

The Fed will shrink its monthly bond purchases at twice the pace it previously announced, putting it on pace to end them altogether in March.

The S&P 500 shook off an early loss and closed up 1.6%, just below the record high it set last Friday. The index is coming off two days of losses.

The Dow Jones Industrial Average rose 1.1% and the Nasdaq gained 2.2%.