U.S. RATE CUT EASES PRESSURE ON ₹, STOCKS, BUT ROAD AHEAD UNEASY

THE Federal Reserve on Thursday reduced US benchmark interest rates by 0.25 percentage points to 3.5-3.75 percent, the lowest in nearly three years.

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However, the central bank's third cut of the year drew policymakers' dissent amid a weakening job market, America's inflation trajectory, and the state of its economy. The dot plot-the Fed members' individual expectations on rates-indicated one more reduction in 2026 and 2027 each, before the federal funds rate hits the longer-run target of 3 percent. In other words, the hawkish move carried caution flags about inflation favouring higher rates, while those with a dovish stance argued for lower rates to support the labour market. On balance, the central bank signalled a tougher road ahead, indicating that further easing may be put on