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Below The Views on Fed's recent policy decision.- Hitesh Jain, Strategist, Institutional Equities Research, Yes Securities India Ltd

“Although the Fed decided to maintain a status quo on the policy rate, the posturing sounded a little hawkish, with the majority of the Fed members endorsing another rate hike later this year. However, we deem 5.5% to be the terminal rate and do not see any rate hikes from here on. Core PCE inflation projections are downwardly revised for 2023 when compared with previous estimates, which indicates a series of rate hikes are working.  We see the Fed rate unchanged at 5.5% for this calendar year, while fancy a chance of one rate cut in Q1 2024 as economic growth is likely to see deceleration, manifesting the lagged impact of cumulative 500bps rate hikes.”

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