Since the US economy is not in distress, lower interest rates may increase spending relatively quickly. Also, Mr Powell termed the cut a calibrated attempt to take the policy rate to the neutral rate
Gold, Treasuries and the S&P 500 Index have all typically risen as the Fed starts lowering rates, according to an analysis of the past six easing cycles going back to 1989
The US Federal Reserve on September 18, reduced its benchmark interest rates by 0.5%. This marked the first rate by the US Fed since 2020. How does the Fed's rate move affect global economies?
Experts shared mixed views on the impact of the half-point benchmark rate cut by the US Federal Reserve, as some believe cheaper financing could boost investment flows, others said it could lead to a decline in returns on equity and a rise in gold prices. The US Federal Open Market Committee voted to cut the federal funds rate target range by 50 bps to 4.75-5 per cent, from 5.25-5.50 per cent, against expectations of a cut half that size. The US central bank had kept interest rates at an over two-decade high for 14 months. According to PHDCCI President Sanjeev Agrawal "We expect that the cut in the Federal Reserve rate could lead to a decline in returns on equity and a rise in gold prices". Echoing similar sentiments, Colin Shah, MD at Kama Jewellery, said this scenario must be taken positively, as the rate cut has opened doors for gold to scale new highs shortly, reinstating the might of the yellow metal as an investment haven. Some experts believe the Fed rate cut could lead to
The US Federal Open Market Committee on Wednesday voted to cut the federal funds rate target range by 50 basis points to 4.75-5.00 per cent from 5.25-5.50 per cent
If the US Federal Reserve (US Fed) rate cut is combined with a weaker dollar then the EMs (ex-China) should do well
The surge in IT stocks was fuelled by the US Federal Reserve's decision to cut interest rates by 50 basis points, lowering the target range to 4.75 per cent to 5 per cent.
Policymakers see the Fed's benchmark rate falling by another half of a percentage point by the end of this year, and another full percentage point in 2025
US Fed rate cuts: The last time the Federal Open Market Committee (FOMC) cut by half percentage was in 2008 during the global financial crisis
The decision drew a dissent from Fed Governor Michelle Bowman, who wanted just a quarter-point cut
Futures rose 0.6 per cent in the Asia day and Nasdaq futures were up 0.9 per cent
In emerging markets, the Fed's half percentage point cut offers reduced pressure on exchange rates
Cain International CEO Jonathan Goldstein said return to office policies are as important to the fate of the real estate industry as any interest-rate cuts by the Fed
Stock Market Highlights: As many as 33 constituent stocks on the Nifty50 ended in the red, dragged by TCS, Infosys, HCL Tech, Tech Mahindra, and Wipro, with a fall of up to 3.50 per cent
The fall in IT stocks may also be attributed to a report which says Accenture Plc is planning to push back the bulk of its staff promotions by six months
Fed officials are expected to lower interest rates this week for the first time in more than four years
To Kristina Hooper, chief global market strategist at Invesco, the US economy looks set to avert a recession as the Fed starts easing policy just ahead of the US election
The 1-month non-deliverable forward indicated that the rupee will open at 83.87-83.88 to the US dollar
The market is likely to remain cautious until the Federal Reserve makes its interest rate decision on Wednesday, say experts
When Fed policymakers sit down Tuesday for the start of their two-day meeting, they'll have fresh figures on the state of consumer demand