Wed Sep 18 06:13:00 UTC 2024: ## US Fed Expected to Cut Interest Rates, Impacting Global Markets

**New Delhi, September 18:** The US Federal Reserve is expected to announce its first interest rate cut in four years on Tuesday, with markets anticipating a 25-basis-point reduction. The decision, scheduled for 11:30 pm (India time), could have significant implications for global stock markets, including India.

While a 25-basis-point cut is largely priced in, experts are keenly watching for the tone and reasoning behind the decision, as well as Fed Chair Jerome Powell’s comments on inflation and employment. Analysts believe the rate cut could mark the beginning of a series of reductions, aiming to support the job market and achieve a soft landing for the US economy.

However, some market participants are speculating a more aggressive 50-75 bps cut, driven by a recent letter from three Democratic senators urging Powell to aggressively slash interest rates to prevent a recession.

India’s equity market, which has been on a roll recently with both the BSE Sensex and NSE Nifty hitting new all-time highs, is expected to react to the Fed’s decision. Other key factors influencing market sentiment include Japan’s inflation data and the Bank of Japan’s monetary policy announcement.

The Fed’s decision is significant as it comes after a year of aggressive interest rate hikes aimed at combating inflation. The upcoming rate cut could mark a shift in the Fed’s strategy, signaling a move towards a more accommodative stance.

**Disclaimer:** This article is based on information available at the time of writing and may not reflect the latest developments. It is advised to consult with financial professionals for investment decisions.

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