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* Fed raises rates by 75 bps to 3-3.25% range
* Terminal rate seen hitting 4.6% in 2023
* U.S. indexes immediate reaction is negative
* Main benchmarks had traded up prior to Fed announcements
* Indexes down: Dow 0.97%, S&P 0.95%, Nasdaq 1.15% (Recasts, adds Fed decision, market reaction)
By David French
Sept 21 (Reuters) - Wall Street's main indexes plunged into negative territory immediately after the Federal Reserve announced an expected large hike in interest rates on Wednesday, the latest move by the U.S. central bank to tame decades-high inflation.
At the end of its two-day meeting, the Fed lifted its policy rate by 75 basis points for the third time to a 3.00-3.25% range. Most market participants had expected such an increase, with only a 21% chance of a 100 bps rate hike seen prior to the announcement.
Policymakers also signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023.
By 2:05 p.m. ET (1805 GMT), the Dow Jones Industrial Average fell 296.82 points, or 0.97%, to 30,409.41, the S&P 500 lost 36.59 points, or 0.95%, to 3,819.34 and the Nasdaq Composite dropped 131.77 points, or 1.15%, to 11,293.28. (Reporting by Medha Singh, Devik Jain and Ankika Biswas in Bengaluru and David French in New York; Editing by Marguerita Choy)