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New Delhi: The focus of stock market investors remains on the decisions of the Fed Reserve. Today the Fed Reserve will announce its decisions regarding interest rates. The impact of the Fed's decisions and comments can be seen on the stock market.
Let us tell you that it is expected that this time the Fed may cut the interest rate. If this happens, the interest rate will be cut in America after almost four years. Yes, the Fed has not cut the interest rate for the last four years.
However, investors and financial experts are hopeful that this time the Fed may cut the interest rate. It will be decided in the Fed Reserve meeting that the interest rate should be cut by 0.25 percent or 0.50 percent.
Market experts say that if the Fed cuts interest rates, it will impact stock markets around the world.
Will the market boom
According to a Forbes report, if the Fed cuts interest rates, the stock market may rise. Talking about the previous interest rate cuts, the market has seen a rise 7 times out of 9. In such a situation, there is a possibility of a rise in the market this time too. At the time of the previous interest rate cut, the market generally saw a rise.
Why will the interest rate be cut?
There are many reasons behind cutting the interest rate. One of these reasons is the rising inflation in America. The inflation rate in America has reached around 2 percent. In such a situation, it is necessary to cut the interest rate to reduce the rising inflation. Apart from this, there have been indications for a long time that there may be an economic recession in America. The reason for the signs of economic recession is the continuous decline in the unemployment rate. To control unemployment and inflation rate, the Fed can cut the interest rate by 0.25 percent.
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