US stocks drop after Fed policy statement

New York, Sep 22 (IANS) US stocks ended lower on Thursday, with the Dow Jones industrial average falling for the first time in 10 sessions, as investors were digesting the latest Federal Reserve statement.

The Dow Jones Industrial Average shed 53.36 points, or 0.24 per cent, to 22,359.23. The S&P 500 lost 7.64 points, or 0.30 per cent, to 2,500.60, Xinhua news agency reported.

The Nasdaq Composite Index was down 33.35 points, or 0.52 per cent, to 6,422.69.

The US Federal Reserve on Wednesday kept interest rates unchanged, but announced that it will start to unwind its $4.5 trillion balance sheet from October, a further step to end the loose monetary policy.

"Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year," said the Fed in a statement released after its two-day monetary policy meeting.

The central bank said Hurricanes Harvey, Irma, and Maris were expected to affect US economy in the near term, while they would not alter the course of the economy in the medium term.

Fed officials continue to expect that the US economy will expand at a moderate pace in the future.

"We're working down our balance sheet, because we feel that's stimulus that in some sense is no longer needed," said Fed chairwoman Janet Yellen at a press conference after the Fed meeting.

"The basic message here is US economic performance has been good," she added.