Wall Street closed sharply lower after the Federal Reserve stepped up its fight against inflation by raising interest rates.

The S&P 500 lost 1.7% Wednesday, as did the Dow Jones Industrial Average.

The Fed's fifth rate hike of the year came in as expected, three-quarters of a percentage point, but the central bank also raised its forecasts for how high interest rates will ultimately have to go.

The Fed is raising rates to fight the worst inflation in 40 years. The worry is that it may cause a recession by hitting the brakes too hard on the economy.