Fed Meeting Interest Rates: This Time FED Did Not Change Interest Rates, Know What Will Be the Impact on the Indian Economy

Fed Meeting Interest Rates: The Federal Open Market Committee recently concluded a meeting in which no changes were made to the interest rates. The federal funds rate has been fixed between 4.25 percent and 4.5 percent. Since last December, this interest rate has been kept fixed in the same manner, which is adversely affecting the economy. Now, since there has been no change in the interest rate this time as well, will it have an impact? Let’s find out more about it.

Federal Reserve Chairman Jerome Powell provided information about this, stating that the decision to keep interest rates fixed during the conference was taken due to global economic uncertainty and the tariff plans of US President Donald Trump. Inflation was at 2.3 percent in October 2024, which may now reach around 2.8 percent. The FED’s plan is to bring this inflation rate down to 2 percent, for which some cautious measures will be adopted.

Impact of FED’s Decision on the Global Economy

Due to the decision taken by the FED, the US dollar will strengthen, and pressure will increase on the Indian rupee, which will create stress on the Indian economy. Pressure will also be seen on gold prices. Since interest rates are being kept stable, the interest rates on loans and credit cards in the US will not change either, which will cause consumers to limit their spending. Talking about the Indian economy, the Reserve Bank of India may also keep its repo rate fixed at 6.5 percent. Due to this decision, fluctuations may be seen in the Indian stock market. A decline in bond prices may be observed in India