NEW YORK (CNNMoney) -- U.S. stocks edged lower Wednesday after the Federal Reserve left its economic policies unchanged, dashing hopes for more stimulus measures.
After a two-day meeting, the Fed's Open Market Committee issued a statement that was largely identical to the one it released after its June meeting.
The central bank said economic activity "decelerated" and reiterated its former guidance, forecasting it is likely to hold interest rates near "exceptionally low levels" at least through late 2014.
Some investors had expected the Fed to say it would hold interest rates near zero into 2015. But hopes for more aggressive stimulus measures had been scaled back this week, said Quincy Krosby, market strategist with Prudential Financial in Newark, N.J.
"That's why there wasn't a more visceral reaction in the market," Krosby said.
The Fed announcement came ahead of the European Central Bank's highly-anticipated meeting in Frankfurt on Thursday.
Investors are hopeful that the ECB will announce some form of new action, after central bank head Mario Draghi said last week that the institution will do "whatever it takes" to preserve the euro.
"In many ways, Draghi has already acted," said Krosby. "That was a verbal intervention if there ever was one."
At the same time, investors will probably be disappointed if the ECB does not do something to restore confidence in the bond market.
"The market is not going to give Europe much time to act if the deterioration continues," Krosby added.
Economy: U.S. private-sector employers added 163,000 jobs in July, according to a report from payroll-processor ADP. Economists had expected an addition of 125,000 jobs.
The Institute for Supply Management said its Manufacturing Index edged higher in July to 49.8 from 49.7 in June. Economists expected the index to come in at 50.1, according to Briefing.com.
The Census Bureau said construction spending rose 0.4% in June, compared with a forecasted 0.5% increase.
Currencies and commodities: The dollar fell against the euro and Japanese yen, but gained ground versus the British pound.
Oil for September delivery rose 79 cents to $88.85 a barrel.
Gold futures for August delivery fell $6.80 to settle at $1,60.3.70 an ounce.
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