Indian markets remained cautious on Wednesday morning as investors kept positions light ahead of the US Federal Reserve’s policy decision due overnight. The outcome of the two-day FOMC meeting and Jerome Powell’s comments will be closely tracked because any shift in the Fed’s rate path can influence foreign inflows, the rupee and overall sentiment in Indian equities.

What Is the FOMC?

The Federal Open Market Committee (FOMC) is the main policy-making arm of the US Federal Reserve. It has twelve voting members and meets eight times a year to set the federal funds rate; the benchmark interest rate that affects borrowing costs across the world’s largest economy.

Its decisions also shape global liquidity, dollar strength and investment flows into emerging markets like India.

FOMC Meeting:

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