Fed hikes interest rates despite declining inflation, sets plan for balance sheet reduction

- The Federal Reserve announced a quarter-point rate hike Wednesday as expected.

- The central bank last increased its benchmark rate in March.

- It now believes inflation will fall well short of its 2 percent target this year.

- The statement gave more detail on how it will unwind its $4.5 trillion balance sheet.

Interest rates addressed at Fed meeting with Janet Yellen