The Fed said the initial cap for Treasuries would be set at $6 billion per month initially and increase by $6 billion increments every three months over a 12-month period until it reached $30 billion per month in reductions to its holdings.
With GDP growth expected to remain above its long-term potential over the next few years, and the unemployment rate to remain below its long-run level, the Fed as a whole seems to be willing to look past what it sees as near-term economic noise.
Brent crude settled down 8 cents at $46.92 a barrel, while US crude settled down 27 cents at $44.46, after touching a six-month low of $44.32 a barrel.
The falls come after the International Energy Agency warned the global supply glut would continue into next year.
The Fed's decision to raise rates, announced in a statement after its latest policy meeting, was approved 8-1, with Neel Kashkari, head of the Fed's Minneapolis regional bank, dissenting in favor of holding rates unchanged.
Among stocks in London, retailers and housebuilders were leading declines, with Charles Church builder Persimmon down 6% or 133.5p to 2288.5p. The S&P 500 lost 15.26 points, or 0.63 percent, to 2,422.66.
Picture it as a double thumbs up from Fed chairwoman Janet Yellen. Japan's benchmark slipped as the yen gained against the dollar.
"There is a lot to digest, and even some apparently conflicting signals, such as the fact that the Fed revised its own inflation outlook slightly down and yet kept its intention to raise rates again this year", said Mitsuo Imaizumi, Tokyo-based chief foreign exchange strategist for Daiwa Securities.
This evening the Central Bureau of Statistics will publish Israel's Consumer Price Index for May with economists expecting that it rose 0.3% over the month.
The Fed raised its rate by a quarter percentage point on Wednesday to one-and-a-quarter-percent citing great progress in the USA economy including an increased number of jobs and a drop in the unemployment rate. You can think of this rate increase as the Fed's seal of approval on the economy's progress. Fed expected United States unemployment to end the year at 4.3 per cent instead of its previous 4.5 per cent forecast.
Copper fell 0.6 percent to $5,665 a tonne, having earlier hit a one-week low of $5,642, while Shanghai aluminium dropped 1.2 percent to $13,560 a tonne.
Europe's benchmark bond yield held near seven-week lows ahead of the Fed decision. Brent crude, used to price worldwide oils, fell 6 cents to $46.94 a barrel. The euro edged up to $1.1219 from $1.1217.