Wed Sep 18 11:28:24 UTC 2024: ## US Fed Expected to Cut Rates, Boosting Mortgage Market and Stocks
**New York, September 18, 2024** – The US Federal Reserve is widely expected to announce its first interest rate cut in over four years today, a move that could significantly impact the housing market, stock prices, and global economies.
The anticipation of a rate cut has already spurred a decline in US mortgage rates, which reached a nine-month low last week. This, in turn, has led to a surge in home loan applications, including refinancing and purchase applications.
Wall Street is also optimistic, with US stock futures rising ahead of the Fed’s announcement. The market is largely expecting a 50-basis-point cut, though some analysts believe a smaller 25-basis-point cut could be a disappointment.
While a rate cut would likely benefit borrowers in the US and potentially India, it could also lead to lower returns on savings accounts and fixed deposits.
The Fed’s decision will also have implications for gold prices, with investors closely watching whether the central bank opts for a larger or smaller cut.
The global markets are keenly observing the Fed’s move, with Asian stocks trading mixed and European markets opening with a mixed performance.
The Fed’s decision is expected to be announced at 2 pm ET (11:30 pm IST). The Fed Chair, Jerome Powell, will address the media later in the day.
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