The Fed wants to maintain rates moderately above current levels to regulate economic activity and curb inflation|William Warby|CC BY 2.0

The Federal Reserve opted to hold interest rates steady, but stocks slid after it hinted at one more hike before the end of the year and fewer cuts than previously indicated next year.

While the Fed is holding rates relatively higher, it plans to continue reducing its bond holdings.

The Fed wants to maintain rates moderately above current levels to regulate economic activity and curb inflation.