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
Nepal Finance Minister to visit India, seek support ...
8th Pay Commission begins discussions in Chandigarh
India approaches Q3 FY27 from position of relative m...
UPI charges row: Cong invokes 'digital u-turn', AAP ...
UPI MDR can help make digital payments ecosystem sus...
Nifty Opens Higher, Consolidates in Narrow Range - G...
Social Worth Technologies gets SEBI`s nod to raise f...
PGIM India MF announces IDCW under Arbitrage Fund
PGIM India MF announces IDCW under Aggressive Hybrid...
PGIM India MF announces IDCW under Equity Savings Fund
