New Delhi, March 19 -- US stocks sold off following the US Federal Reserve's decision to keep rates unchanged for the second time, while also projecting higher inflation amid the Middle East crisis and offering little indication of when it might next cut short-term borrowing costs.

All three key indices finished in the red, with the Dow Jones Industrial Average falling 1.64% to its lowest level in four months. With today's decline, the index has dropped 5.6%, putting it on track for its worst monthly fall since 2022.

The S&P 500 and Nasdaq also declined by 1% each. Meanwhile, the US dollar rebounded above the 100 mark.

The Federal Open Market Committee voted 11-1 to hold the benchmark federal funds rate in a range of 3.5% to 3.75%. Gov...