The US Federal Reserve on Wednesday took a major step by cutting the interest rates by 25 basis points or 0.25%. After this deduction of one -fourth points in the policy rate by the central bank, it has now come in the range of 4 to 4.25 percent. Earlier, interest rates were within 4.25 to 4.50 percent. This is the first rate of this year by the US Fed after Donald Trump became President of the US and Trump was constantly targeting the fed for cuts in interest rates. The impact of this move of America can be seen on Asian markets as well as the Indian stock market.
This major decision after the two -day meeting is expected to curb the risk of increasing inflation due to Trump’s tariff. The two -day Federal meeting was chaired by American Fed Chairman Jerome Powell and it was decided to cut rates. While issuing a statement related to the decisions taken in the meeting, the FOMC said that economic activities have slowed down, while the speed of employment has also slowed down. It states that inflation has increased somewhat in the US and it remains high. Fed has indicated further cuts in policy rates by the end of this year.
Trump wanted even more cuts. This decision of cutting rates by the American Fed has been taken at a time when not only the central bank is struggling for its independence, but the American economy is also facing many challenges. Let us tell you that the Donald Trump administration was seen pressuring the Federal Reserve to further cut the policy rates. Not only this, Fed Governor Stephen Miran was also in favor of deduction of 50 basis points in interest rates. However, the Fed Chairman emphasized with a cut of 25 basis points that monetary decisions would be based on upcoming data and changing economic conditions.
Markets from America to Asia increased. For the first time in the US in 2025 this year, the impact of rate cuts has been seen on stock markets around the world. The US stock markets closed with a sharp boom. Dow Futures rose 125.30 points to 46,143.60, Dow Jones gained 260.42 points to 46,039.33 and S&P increased by 28 points to close at 6,698.75. At the same time, on Thursday, the Asian market also opened rapidly. Gifts were trading with a sharp jump from Nifty to Nikkei and Kospi.
Any financial stir in the US has a direct impact on the Indian stock markets and in such a situation, the stock market can be seen on Thursday due to the US Fed cuts and the expectation of further cuts.
