The rate hike came a day after Mr Trump urged the Fed not to "make yet another mistake", while on Monday he said it was "incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us. the Fed is even considering yet another rate hike".
Despite the forecast for fewer hikes, investors sent stocks plunging once Chairman Jerome Powell began a news conference, apparently disappointed that Powell didn't go further to signal a slowdown in rate increases.
"Economic activity has been rising at a strong rate", the central bank said in a statement issued after the meeting.
The US Fed raised its target rate by a quarter point in its latest policy move and said it expects two more rate hikes for next year, down from three rate hikes previously.
The Nikkei declined to 20,015.67 points, putting its loss for the year at almost 13 percent, while the Shanghai index declined to 2,512.54.
Investors are growing anxious that global economic growth is cooling off and that the US could slip into a recession in the next few years.
Members also lowered their forecast for interest rates in 2020 and 2021.
Overall, the FOMC saw the median Fed funds rate at 2.4% at the end of 2018, no change given that this was the last meeting of the year.
Following the decision, stocks erased gains, 10-year Treasury yields fell and the dollar bounced off its lows of the day.
"We expect additional rate hikes will invert the three-months to 10-year yield curve, which is a reliable signal for a bear market for stocks and a coming recession for both the USA and the rest of the world", said Jeffrey Kleintop, chief investment strategist at Charles Schwab in Boston.
Bond prices rose, sending yields lower. That's a substantial move for that benchmark lending rate. Powell thus doesn't seem to be fazed by the prospect of moving beyond what some consider is the neutral rate, which means markets may now underprice the commitment of the Fed to two rate hikes during 2019. An easing of monetary policy going forward should be supportive of the precious metals sector as the attractiveness of the dollar fades; however, today, we now have a rate hike and gold has slipped and the dollar has improved.
Banks and consumer discretionary stocks were the biggest drag on the market fro most of the session, with ANZ, NAB and Westpac all down more than one per cent.
On Wednesday, officials did cut their forecasts for economic growth in 2019 to 2.3 per cent, down from the 2.5 per cent they anticipated in September.
The S&P 500 fell 36 points, or 1.4 per cent, to 2,471. Major economies are weakening, and fears of a crisis are now hitting the market, as seen by the many sell-offs this week.
The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for United States growth and inflation.
However, in a sign of the extent to which markets are anxious about the state of the global economy, even a more dovish tilt from the Fed at its policy meeting on Wednesday failed to buoy equities.
The same is happening with their Mumbai reception too , where the newlyweds have been hogging all limelight with their love. Priyanka and Nick soon hosted a Delhi reception post their wedding , where they looked too attractive for words.
Rober made a decision to record videos of people attempting to steal the device, which has been in the Apple Homepod box. He also installed four smart phones that would track the package location and record the encounter.
It is unacceptable for the country to wait another month before Parliament has the chance to vote on Theresa May's botched deal. The Labour leader is threatening the motion unless the Prime Minister sets a date for the vote on her Brexit deal today.
He's an outstanding young player, I think England has a diamond . "Over 90 minutes, Phil was incredible the way he played". Sane , however, could have had a hat-trick had he not passed up a shooting chance on another lightning break from deep.
Forty-two people have been injured in a suspected gas explosion at a restaurant in Japan , according to police and local media. According to broadcaster NHK, it took firefighters several hours to extinguish the blaze that broke out after the explosion.
The suit alleges that Facebook misled users about the security of their data and failed to properly monitor third-party apps. Context: Zuckerberg's drop in net worth is because of multiple scandals plaguing his company, Facebook.
Nielsen said the Mexican government, which will now be forced to deal with the migrants, has been informed of the U.S. decision. Thursday's decision marks the latest in an unusual relationship between Lopez Obrador, a leftist and nationalist, and Trump.
Wyoming Senator John Barrasso said that Republicans remained hopeful they could make a proposal acceptable to Trump. Behind the scenes, Republican aides were furious that Trump has, yet again, proven an unreliable governing partner.
Melbourne will host the traditional Boxing Day Test before the final match is played at the Sydney Cricket Ground from January 3. We thought four quicks would be enough. 'We didn't play with the same intensity as we did in the first test match, ' Kohli added.
Gatwick Airport: Drone sightings halt flights
All departures and arrivals were suspended at about 9pm last night after the drones were seen flying above the airport. It wasn't immediately clear how many flights were affected in total, said Mr Mark Lever, a Gatwick spokesman.
Manchester United Accidentally Announce New Coach?
United reached the last 16 in the Champions League , where it will play Paris Saint-Germain over two legs in February and March. It is believed Phelan will be Solkjaer's assistant at United until the end of the Premier League season.
Vikings have four Pro Bowl players, including WR Thielen
Madison started the Pro Bowls following the 1999-2001 seasons, while Surtain started the Pro Bowls following the 2002-03 seasons. His 11 interceptions since Week 13 of the 2017 season are two more than any other National Football League player in that span.
China temporarily suspends tariffs on U.S
Apple Inc has so far avoided tariffs on popular products it manufactures in China such as the iPhone and Apple Watch. Two Canadians were detained in China on Monday in what many experts say was retaliation for Canada's arrest of Meng.
Trump argues he ‘never directed’ longtime fixer to break law
During an earlier interview on Fox News on Thursday, Lanny Davis, an adviser to Cohen , said Trump's credibility is questionable. The evidence, Cohen said, is on his side, as the special counsel's statement about the credibility of his claims suggests.