The Dow Jones returned 0.80%, the Nasdaq index fell 0.46% and the broader S&P 500 index fell 0.70%.
The indices were trading in the green before the Fed's decision, which raised its key rate by a quarter point to a range between 5% and 5.25%, a first in more than 15 years.
The initial market reaction was positive, as the Federal Reserve did not indicate that it expected further hikes, unlike the previous meeting.
At his press conference, Jerome Powell nevertheless said that a "decision on a pause (had) not been taken" on Wednesday, with the Fed not ruling out further hikes in the coming months.
The Fed chairman also ruled out one or more short-term rate cuts, provided that the US economy follows the path anticipated by the central bank, namely a "slight" recession, which displeased investors and pushed the indices into the red, but still within tight margins.
Traders nevertheless continued, Wednesday after the Fed's communication, to expect at least three rate cuts by the end of the year.
In tune, bond yields have eased, a sign of a market that sees the US central bank fold before 2024. The yield on 10-year US government bonds stood at 3.36% against 3.42% the previous day at the close.
"I feel like the consensus is overall that the tone was offensive rather than dovish," said Steve Sosnick of Interactive Brokers.
"It seems that the market did not get everything it wanted, but it received everything it anticipated," said Art Hogan of B. Riley Wealth Management.
For Steve Sosnick, the monthly report on US employment, due on Friday, could stir the indexes much more than the Fed did on Wednesday.
"The Fed is orienting itself according to indicators, and (this report) is crucial" to take the pulse of the labor market and the pace of wage growth, said the analyst.
On this chapter, the New York Stock Exchange welcomed with reservation the monthly data of the firm ADP, which showed that 296,000 jobs had been created in the private sector in April, double the estimates of economists.
"It has not reacted much because ADP is not always a good indicator of the figures of the employment report" expected Friday, which is published by the Department of Labor and considered more reliable.
On the stock market, after two terrible days, the US regional banks PacWest (-1.98%) and Western Alliance (-4.48%) declined more moderately but remain in a bad position.
The decline in bond yields benefited so-called growth stocks, including Tesla (+0.19%) and Alphabet (+0.13%).
On the other hand, the semiconductor manufacturer AMD (-9.22%) fell back, weighed down by forecasts deemed disappointing for the second quarter, due to the slowdown in demand in certain market segments, PCs in particular, despite better-than-expected results in the first quarter.
Starbucks fell (-9.17%), also due to forecasts seen as cautious, despite quarterly results above estimates.
The Eli Lilly laboratory (+6.68%) benefited from the publication of encouraging clinical trials for its treatment Donanemab, according to which it slows "significantly" the progression of Alzheimer's disease.
Cosmetics group Estée Lauder plunged (-17.34%) after missing the target for its quarterly net profit and lowering its annual forecast. This is due to the slower than expected recovery of travel in Asia, which affects the revenues of points of sale at airports and duty free.
© 2023 AFP