The Fed cut interest rates by 25 basis points, but with inflation still above 2 per cent, its stance remains cautious
Trump’s win raises uncertainty over Fed’s policy amid fears of higher inflation due to planned tariff hikes and tax cuts
Despite Fed rate cuts, the 10-year US bond yield surged 70 basis points, reflecting investor uncertainty over Trump’s fiscal policies and inflation risks
Powell noted fiscal changes need congressional approval, but markets are already adjusting, posing challenges for the Fed's rate strategy
The US Budget deficit, projected at 6.7 per cent of GDP long-term, may tighten global finances and attract capital inflows to the US
A stronger dollar and currency volatility pose short-term risks for India. Policymakers must stay alert and adapt to maintain stability