* The Fed is expected to hold interest rates steady and shave the number of hikes projected for the rest of the year, when it releases its policy statement at 2 p.m. EDT (1800 GMT).

* The interest-rate sensitive financial sector fell 0.36 percent.

* At 9:49 a.m. ET (13:49 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 58.14 points, or 0.36 percent, at 16,129.96.

* All the major sectors were lower, with the healthcare sector's 1.49 percent fall being the steepest.

* The energy sector dropped 0.2 percent as crude prices fell, dragged down by concerns about global economic growth.

* On the TSX, 72 issues were higher, while 158 issues declined for a 2.19-to-1 ratio to the downside, with 23.58 million shares traded.

* The largest percentage gainer on the TSX was Westshore Terminals Investment Corp, which jumped 5.7 percent. Its gains were followed by Alacer Gold Corp, which rose 2.9 percent.

* Franco-Nevada Corp fell 5.5 percent, the most on the TSX, after reporting quarterly results. The second biggest decliner was Bausch Health Companies Inc, down 5.1 percent.

* The most heavily traded shares by volume were Aurora Cannabis, Green Organic Dutchman Holdings Ltd and Bombardier Inc.

* The TSX posted four new 52-week highs and no new low.

* Across all Canadian issues, there were 16 new 52-week highs and two new lows, with total volume of 37.78 million shares.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Shinjini Ganguli)