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Below the Reaction Quote On US Fed Reserve announcement (FOMC) by Mr. Subho Moulik, CEO & Founder, Appreciate, a SEBI and IFSCA registered fintech company

"The US Federal Reserve's decision to maintain benchmark interest rates unchanged underscores its cautious approach towards managing inflationary pressures. With concerns over the persistent lack of progress towards achieving the Committee's two per cent inflation target, the Fed has chosen to exercise patience and vigilance. This move is as expected given the Personal Consumption Expenditure data, rose by 2.7% in March.

From the point of view of foreign investors, US treasury bonds remain attractive. The Indian rupee will continue to remain weaker against the dollar as well, further dampening US investors’ returns from Indian investments. Therefore, greater foreign inflows to equities in emerging markets such as India may have to wait a while longer.

However, by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion starting in June, the Fed aims to slow down the pace of unwinding its bond holdings accumulated during previous quantitative easing (QE) measures. Given likely cuts in the future, private investors are now more likely to redirect some of their assets towards riskier investments like US stocks over the medium term."

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