Markets rallied Wednesday after the Federal Reserve raised interest rates by 25 basis points but did not accelerate its timeline for future tightening.

The tone of the Fed's statement, along with the “dot plot” matrix that shows each member's expectations for the future pace of hikes, sends a dovish tone that the Federal Open Market Committee expects to keep moving along the path of rate normalization.

The Fed continues to forecast two more rate hikes in 2017, and three in 2018.

In its statement, the Fed wrote that it expects economic activity to expand at a moderate pace, labor market conditions to strengthen and inflation to stabilize around 2 percent.

“Near-term risks to the economic outlook appear roughly balanced,” the Fed said. “The Committee continues to closely monitor inflation indicators and global economic and financial developments.”

Look for a more detailed analysis in Friday's Market Update.