The S&P 500 stock index fell more than 2 percent on Wednesday after the Federal Reserve said the economic outlook remains grim, even as it acted to boost economic demand.

The Dow Jones industrial average <.DJI> dropped 212.14 points, or 1.86 percent, to 11,196.52. The Standard & Poor's 500 Index <.SPX> dropped 25.98 points, or 2.16 percent, to 1,176.11. The Nasdaq Composite Index <.IXIC> dropped 29.37 points, or 1.13 percent, to 2,560.87.

(Editing by Kenneth Barry)