weather_iconAshburn | 1.96 °C | AQI 15
Monday, 17 February, 2025

---Advertisement---

Business

US Fed Keeps Benchmark Rate Unchanged: What It Means For India’s Economy?

The central bank's decision may cause tension with the new President, who believes he should have a say in the bank's policies.

The US Federal Reserve (US Fed) on Wednesday announced its move to keep the interest rate cuts unchanged in 4.25-4.50% range in its first major decision under President Donald Trump’s second term. The decision was “unanimous”. The decision was made after US Fed’s meeting. Last year, the central bank of the USA had cut the benchmark rate 3 times in a row. Furthermore, the rate cut got started in September, marking the first decrease in four years.

The central bank’s decision may cause tension with the new President, who believes he should have a say in the bank’s policies.

---Advertisement---

The latest announcement comes at a time when China’s DeepSeek has made a big impact on US markets, causing losses for major American companies like Nvidia.

The Federal Reserve has given the job market a thumbs up, calling it “solid” with low unemployment rates. However, inflation remains a concern, described as “somewhat elevated”. This mixed assessment suggests the Fed might slow down on cutting interest rates in the coming months.

---Advertisement---

What US Fed Rate Cut Means For India’s Economy?

The Reserve Bank of India (RBI) might cut interest rates, making borrowing cheaper in India. Furthermore, the rate cut may weaken the US dollar, causing the Indian Rupee to rise in terms of value. However, a stable rate can lead to larger dollar-rupee divide. A stronger rupee makes imports cheaper, which helps to lower down the inflation in India.

When the US cuts interest rates, investors find investments in the US less appealing. However, now investments can be re-shifted to the world’s largest economy. Notably, the increased foreign investment can boost up the stock market sentiments, leading to a rally.

ALSO READ: Planning to Invest in Bengaluru Real Estate? Here’s What a Buyer Should Keep in Mind

HISTORY

Written By

Akshat Mittal


Get Breaking News First and Latest Updates from India and around the world on News24. Follow News24 on Facebook, Twitter.

Related Story

Live News

---Advertisement---


live

Latest LIVE News Trending Today, Real Time Updates: Delhi Court Adjourns Land Job Scam Case Hearing

Feb 17, 2025
Latest LIVE News Trending Today, Real Time Updates
  • 11:54 (IST) 17 Feb 2025

    Haryana: Bus Carrying 44 Deportees From US Arrives In Ambala

N24 Shorts Logo

SHORTS

RR (Photo Credit- X-Platform)
Sports

RR IPL 2025 Schedule: Can The Inaugural IPL Champions Find Their Mojo Again? Check Out Full RR Schedule Here!

RR had won the title of champion in the very first season of the league, but for the last 16 years, its hands have been empty.

View All Shorts

---Advertisement---

Trending