US Fed Meeting Updates: The US Federal Reserve has finally cut interest rates. In the two-day Federal Open Market Committee (FOMC) meeting chaired by Jerome Powell, it was decided to cut interest rates by 50 basis points. After 4 years, the US Federal Reserve has cut interest rates. Out of a total of 12 members, 11 have voted in favor of the cut. While one vote has been cast against it. Let us tell you, the last time the Fed Reserve cut interest rates was in March 2020. Then the central bank there had cut to support the US economy struggling with the Covid-19 pandemic.
After a cut of 50 basis points, the interest rate in America has now come down to 4.75 percent to 5 percent. Which had earlier reached 5.25 percent to 5.50 percent. Let us tell you, the presidential election is to be held in America after a month. Where there is a tough competition between Donald Trump and Kamala Harris.
Interest rates were increasing from 2022
To control rising inflation from 2022, the Fed Reserve started increasing interest rates. After COVID-19 and the Ukraine-Russia war, the supply chain was badly affected. Due to which inflation in America troubled the people. For this reason, the Federal Reserve started increasing interest rates. But now inflation is decreasing. The US economy is growing. Due to which it was decided to cut interest rates.
There was no change for the 12th consecutive month
Earlier in 2024, the Federal Open Market Committee meeting under the chairmanship of Jerome Powell ended for the 5th time on 31 July 2024. Then the US Central Bank did not change the rates for the 12th consecutive month. Due to which interest rates were at the highest level in 23 years. All this effort of the Central Bank of America was being done to control inflation. Let us tell you, there was no change in interest rates since July 2023.
What will be the impact on you?
The effect of reduction in interest rates can be seen from the stock market to the gold market. Many experts believe that the stock market and gold can see a rise. At the same time, there is a possibility of increased pressure on the dollar. This can strengthen the rupee. In such a situation, the decision of the Federal Reserve can have a negative impact on the exporting companies. Companies from pharma to IT sector will have to be monitored.
