federal Reserve
As expected, the US central bank Federal Reserve has cut interest rates this time too. The US Fed has reduced interest rates by 25 basis points i.e. 0.25%. The Fed announced this rate cut late Thursday night. This rate has been cut in view of decreasing inflation and expansion of economic activities. The Fed said the job market has improved, but growth is still very low.
decline in inflation
The Fed said that the inflation rate is continuously coming closer to the US Central Bank’s target of 2%. The Federal Reserve said the job market has improved, but growth is slow. The Federal Open Market Committee, the central bank’s interest rate-setting panel, said economic activity continues to expand at a strong pace. In the meeting, it was decided to reduce the key interest rate to the range of 4.50% to 4.75%. US Fed Chairman Jerome Powell also said that the elections had no impact on policy decisions.
Will the stock market be affected?
Stock market investors were keeping an eye on the Fed’s decision. As per the expectations of investors, Fed has cut the interest rate by 0.25 percent. According to experts, this decision of the Fed will not have any significant impact on the stock market. Because the market was already expecting that the Fed could cut the rate by 0.25 percent. The Indian stock market closed with a big fall on Thursday. The Bombay Stock Exchange index Sensex fell 1.04 per cent or 836 points to close at 79,541. At the same time, the National Stock Exchange index Nifty closed at 24,199 with a decline of 1.16 percent or 284 points.
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