NEW YORK—The Federal Reserve didn’t surprise investors but still left them disappointed.

Stocks closed mostly higher Wednesday after the Fed said the economy was on the mend and orders for big-ticket manufactured items posted an unexpected increase. Although the Dow Jones industrials fell modestly, the broader market measures ended the day with gains.

Bond prices fell after the Fed said it wouldn’t step up its spending to purchase Treasurys and other debt to pry interest rates lower.

The central bank’s decision to leave its key lending rate at a low of zero ...

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