If the US Central Bank Federal Reserve cuts interest rates by 0.50 percent, what will be the effect on the Indian stock market? Experts say that if this happens, the market may rise sharply. But a message will also go out that a big cut in interest rates is raising concerns about the economy.
Will a strong dollar bring relief? Experts say that economies that were hoping that a cut in US interest rates would weaken the strong dollar and their currency would rise are less likely to see this happen.
According to a JP Morgan report, three of the four previous decisions when interest rates were reduced, the dollar strengthened after the first cut by the Fed. ( US Fed Rate Cut Impact: What will happen to India's stock market if interest rates in the US are reduced by 0.25%?) The dollar's movement will depend on where US rates stand in comparison to other countries. (Editor's Take: Big action will be seen in the market on Thursday after the decision of the US Central Bank Federal Reserve) Big action will be seen in the market on Thursday after the Fed's decision. If we look at polls around the world, 60 percent of people believe that interest rates can be reduced by 0.25 percent. If any cut happens, it will be the Federal Reserve's first decision regarding the cut after March 2020. To support the US economy during Covid, the Federal Reserve had cut interest rates.
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