US Fed Rate Cut: Big news from America... Fed cuts rates, will it affect the Indian market?
US Fed Rate Cut: The US Federal Reserve has once again cut the policy rate. Fed Chairman Jerome Powell gave this information while announcing the decision. On Wednesday, the Federal Open Market Committee (FOMC), the Fed's policy-making committee, announced a 25 basis point or 0.25 point reduction in the Policy Rate, after which it is now in the range of 3.5 percent to 3.75 percent.
This is the third consecutive time that the rate has been cut, and now interest rates in the US are at their lowest level in three years.
Also Read: SpaceX is ready...the world's biggest IPO is coming, Elon Musk will become more richer
Indications of no further cuts
Jerome Powell, while giving information about the decisions taken during the Federal Reserve meeting, said that the US Fed is less likely to cut rates further in the coming months while evaluating the health of the US economy. However, there have also been indications from Fed officials that one more cut may be seen next year.
Fed says - Inflation will increase along with GDP
Along with cutting the policy rate, the US Fed has also increased its estimate for US GDP Growth for 2026. The Fed has increased its estimate to 2.3%, a 0.50% increase from its September forecast. Meanwhile, the inflation forecast released by the Federal Reserve is surprising. The Fed says that the US inflation rate could remain above the target range of 2 percent until 2028.
Also Read: Aadhaar Card Offline Verification: Identity verification now via QR code
Positive impact on the Indian market expected!
A reduction in interest rates by the US Federal Reserve is considered positive for emerging markets like India, and in the past, when rate cuts have occurred, the Indian stock market has seen gains. This is because lower US interest rates reduce the attractiveness of US debt.
Summary
A reduction in interest rates by the US Federal Reserve is also considered a positive signal for emerging markets like India because rate cuts reduce the yield on the dollar in the US, prompting investors to withdraw money from the dollar and invest in emerging countries. In the pre-open session, both the Sensex and Nifty indices were trading in the green zone.
.