Investors Eye US Fed Meeting for Potential Rate Cuts Impact

Investors globally, including in India, are keenly awaiting the US Federal Reserve’s meeting on September 17-18, 2024, where the extent of any potential interest rate cuts will be determined. Mixed expectations linger, and the Fed's decisions will likely impact both global and domestic financial markets.

Investors across financial markets, including in India, are eagerly anticipating fresh cues from the US Federal Reserve's upcoming monetary policy review meeting next week. The meeting, scheduled for September 17-18, 2024, particularly holds significance concerning the potential extent of interest rate cuts.

US Federal Reserve Chair Jerome Powell recently signaled it might be time for the US central bank to reduce interest rates as inflation aligns with the target. Speaking at the Jackson Hole Symposium last month, Powell emphasized that policy adjustments are due, but did not disclose specifics regarding the potential rate cut.

The general expectation is for a loosening of the US monetary policy. Investors are particularly focused on whether the rate cuts will be shallow or deep. According to S&P Global Market Intelligence, the upcoming September FOMC meeting might mark the beginning of rate reductions, though there's uncertainty about the extent of the cuts.

(With inputs from agencies.)