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US Fed decisions to have mixed implications for India

The Statesman Bhubaneswar

|

March 21, 2025

The latest US Fed decision is expected to have mixed implications for currency movements, capital flows and market sentiment in India.

- STATESMAN NEWS SERVICE

On Wednesday, the Federal Reserve announced its decision to keep the policy rate in the 4.25 per cent-4.50 per cent range. In his speech, Fed Chair Jerome Powell had mentioned that former US President Donald Trump's initial policies, such as import tariffs, have contributed to slower economic growth and may have had a temporary impact on inflation.

Policymakers anticipate two rate cuts in 2025, with economic growth projected at 1.7 per cent and inflation at 2.7 per cent for the year. Additionally, the Fed plans to slow the pace of balance sheet reduction by adjusting the monthly redemption cap on Treasury securities by April.

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