Why rate cuts by the U.S. Federal Reserve matter to world markets
3 months ago

Why rate cuts by the U.S. Federal Reserve matter to world markets

The Hindu  

When the Federal Reserve delivers a widely-anticipated interest rate cut on Wednesday, its first in four years, the move will resonate well beyond the United States. Here’s a look at what is in focus for world markets: Follow the leader In spring, as U.S. inflation proved stickier than expected, investors questioned how far others such as the European Central Bank or the Bank of Canada could cut rates if the Fed stayed on hold this year before their currencies weakened too far, adding to price pressures. Breathing space Lower U.S. rates could give emerging market central banks more room for manoeuvre to ease themselves and support domestic growth. “We could see more idiosyncratic actions among central banks on the back of that.” Strong dollar reprieve Those economies hoping U.S. rate cuts will weaken the robust dollar further, lifting their currencies, may be disappointed. “High rates have been a critical headwind to base metals, driving a significant negative physical demand distortion from destocking and weighing on capital intensive end-demand segments,” said MUFG’s Ehsan Khoman.

History of this topic

Fed lowers rates but sees fewer cuts ahead
Top News
3 days, 18 hours ago
Fed lowers rates but sees fewer cuts ahead
Trending News
3 days, 18 hours ago
US Fed cuts key interest rates by 0.25%: 3 key takeaways for stock markets
Top News
4 days, 18 hours ago
US Federal Reserve cuts key interest rates by 0.25%
4 days, 18 hours ago
US Federal Reserve lowers interest rates, signals slower cuts for 2025
Trending News
4 days, 18 hours ago
US Fed rate cut decision: How will it impact Indian stock markets?
4 days, 18 hours ago
Feds drop interest rates by another quarter-point easing burden for borrowers
Trending News
4 days, 20 hours ago
US Federal Reserve cuts key interest rates by 0.25%
4 days, 22 hours ago
Federal Reserve cuts its key rate by a quarter-point but envisions fewer reductions next year
5 days, 13 hours ago
The Fed is about to deliver the last rate cut for a while
Trending News
5 days, 18 hours ago
US Fed cuts interest rates but cautions for year ahead
Trending News
5 days, 18 hours ago
Fed makes third rate cut this year, suggests fewer in 2025
5 days, 18 hours ago
Federal Reserve is likely to slow its rate cuts with inflation pressures still elevated
1 week ago
US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts
1 week, 2 days ago
Global stock index falls, bond yields rise ahead of rate decisions
1 week, 2 days ago
Bond Market Has Worst Week in Months With Less Fed Action Seen
1 week, 2 days ago
Gold eases on profit-taking after scaling over one-month peak
1 week, 4 days ago
Powell says a strong US economy is letting the Fed be ‘cautious’ about cutting interest rates
2 weeks, 5 days ago
December interest rate cut depends on inflation, Fed official says
2 weeks, 6 days ago
Fed Officials Keep Options Open for December Rate Decision
2 weeks, 6 days ago
A top Fed official leans toward December rate cut but says it depends on economic data
2 weeks, 6 days ago
Federal Reserve officials signal cautious path for rate cuts amid still-high inflation
3 weeks, 5 days ago
It’s Reasonable to Consider Rate Cut Next Month, Fed’s Kashkari Says
3 weeks, 6 days ago
Gold drops over 1% on profit-booking, Trump’s Treasury Secretary pick
Trending News
4 weeks ago
month peak as market awaits next Fed cue
1 month ago
Federal Reserve’s likely slowdown in rate cuts could disappoint borrowers
1 month ago
Powell says solid economy allows Fed to consider rate cuts ‘carefully’
1 month, 1 week ago
US Fed Chair Jerome Powell says no need to rush rate cuts amid strong economy
Trending News
1 month, 1 week ago
Powell says Fed will likely cut rates cautiously given persistent inflation pressures
1 month, 1 week ago
US Fed rate cut: First inflation uptick in 7 months does little for Powell-led FOMC’s December plans; here’s why
1 month, 1 week ago
Bullion market not excited about rate cut; to stay subdued for a while
1 month, 2 weeks ago
The Fed’s next moves are now anyone’s guess
1 month, 2 weeks ago
Gold price today: Yellow metal declines after Fed cuts rates by 25 bps; experts share key levels for MCX Gold rate
1 month, 2 weeks ago
US Fed cuts policy rate by quarter-point to 4.50-4.75% after Donald Trump’s poll victory; 5 key takeaways
1 month, 2 weeks ago
Federal Reserve cuts its key interest rate by a quarter-point
Trending News
1 month, 2 weeks ago
Federal Reserve cuts its key interest rate by a quarter-point after Trump's election win
Top News
1 month, 2 weeks ago
US Federal Reserve cuts rate by 0.25% after first post-election meeting, notes easing inflation
Trending News
1 month, 2 weeks ago
Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty
1 month, 2 weeks ago
US Fed interest policy expected today, Trump victory unlikely to change rate cut plans
1 month, 2 weeks ago
Fed cuts rates in boost for Trump
1 month, 2 weeks ago
Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future
1 month, 2 weeks ago
US Fed cuts interest rates by quarter of a percentage point
Top News
1 month, 2 weeks ago
The Fed cuts interest rates — but Trump's election could make things trickier
1 month, 2 weeks ago
Most of Wall Street rises after the Fed cuts interest rates
1 month, 2 weeks ago
The US Federal Reserve must do two things right now
1 month, 2 weeks ago
US Fed meeting: Will a 25 bps rate cut cheer the sombre Indian stock market?
1 month, 2 weeks ago
Americans' Economic Optimism Soars as Interest Rates Fall
1 month, 4 weeks ago
Stocks Fall, US Yields Rise Amid Election Jitters
2 months ago
Why Fed rate cut isn’t the only factor shaping RBI meet
2 months, 2 weeks ago
US Fed Rate Cut: How Has It Impacted Stocks, Gold Prices, Crude Oil, Bonds?
3 months ago

Discover Related