US stocks gained and the dollar fell Wednesday after the Federal Reserve kept interest rates unchanged and offered an economic outlook more dovish than many expected.The US central bank, meeting two days after the Bank of Japan and a day before the Bank of England, highlighted the risk to the US of slower global growth and turmoil in world markets.Fed Chair Janet Yellen said the US economy has stayed “very resilient” in recent months despite global headwinds that include slowing growth in China and Europe and in emerging markets linked to oil production.But the challenges abroad require a “slightly more accommodative path,” she said.Fed officials pulled back their expectations on rate increases in 2016 by about a half percentage point, implying two rate hikes instead of the four previously anticipated.The Fed’s stance came on the heels of an aggressive stimulus package last week by the European Central Bank and as accommodation remains the trend among global central banks.US stocks pushed higher, with the S&P 500 climbing 0.6 percent.The bigger reaction was in the foreign exchange market, where the dollar fell 1.0 percent against the euro and retreated against the yen and other currencies.“Investors punished the dollar because Janet Yellen failed to emphasize that two more rate hikes are expected this year and instead spent the large part of her testimony talking about the troubles in the US and global economy,” said BK Asset Management analyst Kathy Lien.US petroleum-linked shares rose on a 5.8 percent gain in oil prices, while banking shares like Bank of America and Citigroup stumbled on the expectations for slower Fed interest rate hikes. Peabody Energy, the largest US coal miner, plummeted 45.4 percent after it warned that it may be forced to seek bankruptcy protection after it missed a key debt payment.– British budget unveiled –Earlier, European and Asian markets traded cautiously ahead of the Fed announcement, while London shares got a boost as Britain unveiled its annual budget.London main FTSE-100 index closed 0.6 percent higher, with investors happy with the government’s budget plans outlined by finance minister George Osborne.Osborne said the government would seek additional spending cuts totaling £3.5 billion ($5.0 billion), but also cut the forecast for economic growth this year to 2.0 percent due to turbulence in global financial markets and slower growth in China. BP rose 2.4 percent and Royal Dutch Shell 2.8 percent after Osborne’s budget proposed a series of tax cuts to boost North Sea oil investment.The news that Deutsche Boerse and the London Stock Exchange have agreed terms on their planned blockbuster merger to create one of the world’s biggest exchanges also boosted sentiment.But Deutsche Boerse’s share price only got a 0.2 percent boost and LSE shares shed 1.2 percent as investors remained concerned the third attempt by the two to merge could be derailed by a rival bid by US exchange operator ICE or by regulators.