DOW

Dow 12,109.67 -80.34 -0.66%

By: JeeYeon Park
CNBC News Associate

Stocks fell in the final hour of trading to close lower Wednesday after Fed chairman Ben Bernanke acknowledged that the pace of the economic recovery is slower than expected, but offered no hint about plans for new stimulus measures.

The Dow Jones Industrial Average tumbled 80.34 points, or 0.66 percent, to close at 12,109.67. The blue-chip index snapped a four-day winning streak, after trading flat for most of the session.

The S&P 500 slipped 8.38 points, or 0.65 percent, to end at 1,287.14.

The tech-heavy Nasdaq declined 18.07 points, or 0.67 percent, to finish at 2,669.19.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded below 19.

The Federal Reserve said the pace of the recovery was proceeding more slowly than it had expected though it was primarily because of temporary factors. In addition, the Fed's policysetting committee said it will maintain interest rates at exceptionally low levels for "an extended period."

Meanwhile, the FOMC downgraded economic growth forecast by half a percentage point and expects higher unemployment until 2013 in addition to slightly more inflation.

"The reduced pace of the recovery partly reflects factors that are likely to be temporary," Bernanke said during the press conference. "Consequently...the committee expects that the pace of economic recovery will pick up overcoming quarters."

Some experts said traders were disappointed that Bernanke failed to expand on further plans to stimulate the economy, while others noted that it may never happen unless macro data continues to disappoint.

"The only way that [the Fed] could possibly consider QE3 is if the macro data refuses to improve and the market starts to take a real hit—another 15 percent from here," said Kenny Polcari, managing director of ICAP Equtiies. "But if that doesn’t happen and if things just muddle along, then I don’t think there will or should be any QE3."

Volume continued to be light with the consolidated tape of the NYSE at 3.2 billion shares, while just 853 million shares changed hands on the floor.