US Fed rate cut fuel running out: What it means for the Indian stock market and your investment strategy
In the stock markets, what lies ahead often matters more than what has already been done. If this sounds perplexing, consider the US Federal Reserve’s policy decision on December 18. The Fed lowered benchmark interest rates for the third time in a row, cutting by 25 basis points. Yet, major markets across the globe tumbled. Why? Because investors responded not to the Fed’s action but to its future trajectory.
The US central bank has projected only two more rate cuts of a quarter-percentage point by the end of 2025 as against the market’s expectations of three or four rate cuts.
With the December rate cuts, the US Federal Reserve has lowered rates by a full percentage point in 2024. The US central bank has set its short-term borrowing…
