Nikkei share average was flat at 28,875.23, while the broader Topix slipped 0.10% to 1,947.10.
"U.S. inflation could stay at high levels, so we will need more data on inflation, wages and employment. And, quarterly earnings will be a few weeks away, the market is running out of trading factors," Nobuhiko Kuramochi, senior strategist at Mizuho Securities, said.
Two Fed officials said a period of high inflation in the United States could last longer than anticipated, a day after Fed Chair Jerome Powell played down rising price pressures.
Many hospitality-related shares, which led index's gains before the Fed meeting outcome, have now succumbed to profit-taking, weighed also by concerns about a spike in COVID-19 cases after the government eased social restrictions last week.
West Japan Railway fell 2.7% while department store operators Isetan Mitsukoshi and Takashimaya lost 3.2% and 2.1%, respectively.
Sumitomo Forestry shed 0.8% after the company announced a plan to sell new 16 million shares, which amount to 8.7% of its existing shares to raise up to 37.1 billion yen ($334.32 million).
Toshiba erased early losses to close 0.1% flat after financial magazine Diamond reported Kioxia Holdings Corp, formerly known as Toshiba Memory, in which Toshiba holds a 40.6% stake, plans to list as early as in September.
Some growth shares outperformed after U.S. tech stocks hit a record high overnight.
Softbank gained 2.2% following solid gains in U.S. tech shares.
Mercari jumped 8.5% after the flea market app operator ramped up its outlook to forecast a net annual profit of 5 billion yen, its first annual profit since its listing in June 2018.
Eisai gained 1.5% after the drugmaker said U.S. regulator had granted breakthrough therapy designation to their experimental therapy, lecanemab, for patients with early Alzheimer's.
($1 = 110.97 yen)
(Reporting by Hideyuki Sano, Editing by Sherry Jacob-Phillips)