US Fed rate cut: 25 basis points slashed; check the impact on Indian market

Kolkata: Proving Wall Street expectations correct, in a hattrick act the US Federal Reserve slashed its key interest rate by 25 basis points on Dec 11, perhaps providing a breath of fresh air to the somber Indian equity market. While announcing the rate cut, Fed chairman Jerome Powell indicated that he has done his bit and now he US central bank will wait for further signals from the economy and that they could settle for just one pruning in 2026.

KolkayaThe US Fed decision brought down the key policy rate to 3.6% — the lowest rate in the past three years. The motive was to boost consumption by guiding down the rates of mortgages (read housing loans), car loans and credit cards. Powell remarked that the key interest rate was at a level that neither hindered nor stimulated the economy.

T