Australian Shares fell Thursday, tracking Wall Street and other Asian markets, after the US Federal Reserve lowered interest rates but signaled that it would be cautious about further rate cuts in the coming year.

The S&P/ASX 200 Index fell almost 2% or 141.2 points to close at 8,168.20.

Investors are also concerned that some of President-elect Donald Trump's policies could increase inflation, Reuters reported.

In domestic news, Australian consumers' expected inflation rate rose by 0.4 percentage points to 4.2% in December, data from the Melbourne Institute showed.

Elsewhere, Australian household wealth rose 2.4%, or AU$401 billion, to AU$16.9 trillion in the September quarter, data from the Australian Bureau of Statistics showed.

The Australian economy is expected to log an annual growth rate of 1.1% in 2024, down from a previous projection of 1.4%, ANZ Research said in a report.

In company news, Woodside Energy Group (ASX:WDS) agreed to swap assets with Chevron to streamline its Australian portfolio and simplify the North West Shelf joint venture ownership in Western Australia. The company's shares fell nearly 2% at market close.

Meanwhile, Paladin Energy (ASX:PDN) received final clearance from Canada's Minister of Innovation, Science and Industry to acquire Fission Uranium, clearing the last regulatory hurdle to complete the transaction. Shares of the company closed up more than 1%.

Lastly, ANZ Group Holdings (ASX:ANZ, NZE:ANZ) received its first strike against its report on executive pay. More than 38% of shareholders voted against the adoption of the remuneration report at the company's annual general meeting. The lender's Australian shares finished almost 3% lower.