2025-09-18 01:58:31 pm | Source: Artha Bharat Global Multiplier Fund
Views on US FOMC announcement by Nachiketa Sawrikar, Fund Manager, Artha Bharat Global Multiplier Fund
Below the Views on US FOMC announcement by Nachiketa Sawrikar, Fund Manager, Artha Bharat Global Multiplier Fund
The Fed’s neutral rate for the U.S. economy is estimated at about 3.25%. In 2024, the U.S. Federal Reserve Board reduced the Federal Funds Rate from 5.375% to 4.375%. Today, after an extended pause, they cut it again from 4.375% to 4.125%. More importantly, the Fed signalled two additional rate cuts in 2025, which would bring the Federal Funds Rate down to 3.625% by year-end, still slightly ahead of the neutral rate. There is more room to cut rates in 2026.
Historically, when the Fed lowers rates, capital tends to shift out of safe assets such as U.S. Treasuries and bank deposits into riskier assets, including equities, private equity, venture capital, and emerging markets. The anticipated rate cuts in 2025 and in 2026 are expected to boost the valuations of risky assets.
As a result, India should expect stronger capital inflows—particularly in Q4, when large global asset managers finalize allocations. This comes at a time when the Indian economy is demonstrating resilience, even in the face of headwinds such as the Trump administration’s imposition of a 50% tariff on Indian exports. Overall, India stands to benefit from a “double engine” of global liquidity easing and strong domestic fundamentals.
Above views are of the author and not of the website kindly read disclaimer
Disclaimer:
The content of this article is for informational purposes only and should not be considered financial or
investment advice. Investments in financial markets are subject to market risks, and past performance is
not indicative of future results. Readers are strongly advised to consult a licensed financial expert or
advisor for tailored advice before making any investment decisions. The data and information presented
in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the
content of this article for any current or future financial references.
To Read Complete Disclaimer Click Here
Latest News
UPI transactions surge 16 pc to Rs 31.53 lakh crore ...
Buy Shaily Engineering Ltd For Target Rs.4,074 by Mo...
South Korea's monthly exports hit $115.3 billion in ...
Buy Indegene Ltd For Target Rs.718 by Motilal Oswal ...
US Treasury yields could settle around 4.75 pc: SBI ...
Buy Welspun Living Ltd For Target Rs.260 by Motilal ...
Sell Deepak Nitrite Ltd For Target Rs.1,300 by Motil...
Buy MTAR Technologies Ltd For Target Rs.9,000 by Mot...
Buy Motherson Wiring Ltd For Target Rs.45 by Motila...
Neutral Navin Fluorine International Ltd For Target ...
More News
Perspective on Federal Announcement by Ashish Rajodiya, Head of Commodities, PL Capital Group
Perspective on US Fed Decision and its impact on gold by Mr. Colin Shah, MD, Kama Jewelry
Quote on Post US FED Policy Announcement by Sneha Pandey, Fund Manager- Fixed Income , Quantum AMC
Quote on the Proposed US Tariffs on Generic Pharmaceutical Imports from Mr. Param Desai, Research analyst - PL Capital