Federal Reserve s decisions, especially on interest rates, have a profound impact on global markets, including India. Chair Jerome Powell, could chalk out a future trajectory, without any rate cuts this year, or bring it down from the three rate cuts the other Fed officials were projecting. Young retail Indian investors can mistakenly treat these macroeconomic developments lightly, believing instead that it wont have an impact on the Indian markets. But that would be a costly blunder.
The US Federal Reserve is highly likely to keep interest rates unchanged later this week, as policymakers contend with a recent uptick in inflation that has sharply cut the chance of a summer start to interest rate cuts. -
The Fed is not publishing updated economic forecasts this week, and so analysts will instead have to parse FOMC policymakers' public comments in the coming weeks for signs of their thinking on interest rate cuts.
The US Fed has indicated it will cut interest rates in the latter half of 2024. It is an opportunity for investors to invest in debt funds and lock into current high yields and potential for future capital gains.