How inflation and interest rates are shaping investment strategies in US
The Federal Reserve‘s recent decision to lower interest rates marks a significant departure from its previous tightening measures. This pivotal shift in US monetary policy has important implications for Indian investors with exposure to the US market.
Inflation has surged in recent years, leading the Federal Reserve to implement interest rate hikes to control rising prices. These hikes made borrowing more expensive, cooling down the economy and impacting consumer spending.
For Indian investors, this creates a tricky scenario. Inflation erodes the purchasing power of money. When inflation in the US rises, it often means that the real returns on investments—like stocks and bonds—drop significantly compared to nominal returns. This…
