IGI Logo

Below the Quote On US Fed Rate announcement by Mr. Akshay Chinchalkar, Head of Research, Axis Securities 

"The US Fed held rates steady but, in a surprise move, lowered its growth forecasts and flagged upside risks to inflation and unemployment. The dots suggest 50bps worth of rate cuts this year, but what was noteworthy is that all FOMC members felt increasing price pressures were a real risk. In a way, the risk of stagflation - slow growth and elevated inflation - is what the Fed acknowledged. Stocks, including domestic equities, have rallied largely, as slow growth would mean more rate cuts, but that expectation is not on solid footing because of the tariff-related uncertainty, which Powell also flagged clearly.  That said, the broader benchmarks - NSE 500, small-caps, and mid-caps have broken above their respective falling channels and have generated bullish reversal patterns in what has historically been a bullish period, seasonally speaking."

Above views are of the author and not of the website kindly read disclaimer