Wall Street declined Wednesday with the Dow Jones industrials down about 90 points as the Federal Reserve did not rule out an interest rate hike to curb inflation.

Fed said on Wednesday that their predominant concern remained on inflation rather than softening economic conditions.

While recent economic data had been mixed, the economy was likely to expand at a moderate pace in coming quarters. However, additional evidence of sluggish business investment and recent developments in the subprime mortgage market suggested that the downside risks relative to the expectation of moderate growth had increased, it concluded.

Investors, who had been hoping the central bank might lower rates because of the slowing economy, were disappointed on Fed's conclusion.

The Dow Jones average fell 89.23, or 0.71 percent, to 12,484.62, after dropping 118 points earlier in the session. The Standard & Poor's 500 index slipped 9.52, or 0.66 percent, to 1,438.87, and the Nasdaq composite index fell 18.30, or 0.74 percent, to 2,459. 31.

Source: Xinhua