By Admin 
Us fed reserve meeting: The meeting of the Fed Reserve is starting from today. The results of this two -day meeting are coming on September 17, on which the whole world is eyeing. In this meeting, many important decisions can be taken keeping in mind the American economy. In this meeting, the future of the American economy is determined, which affects the economy of the whole world.
This two -day meeting of the Fed Reserve Committee is organized eight times a year. During this time the committee members decide the benchmark Federal Fund rate of the Fed Reserve, which is one of the most important figures of the entire economy. This affects the interest rates given on the loan. It is also used as a tool to control inflation.
What is fomc?
Let us tell you that the Federal Open Market Committee (FOMC) is an institution to create a monetary policy of the US Fed Reserve. It consists of 12 members. These include seven members of the Board of Governors of the Federal Reserve System, President of Federal Reserve Bank of New York and four of the remaining 11 Presidents of the remaining four Reserve Bank. The meeting is held in the Martin Building of Fed Reserve, which is located in Washington DC. Here decisions related to economy are taken by sitting around a large square table.
Every member gets a chance
Through its decision related to FOMC Monetary Policy, either decrease in interest rates promotes economic growth, which increases inflation or an attempt to control inflation through high interest rates, which leads to recession in the economy. The meeting also focus on keeping more employment and prices stable in the meeting. In the meeting, every member of FOMC gets a chance to speak about the economy. Although about 10 minutes are given to speak, but it takes many one and a half hours or even more.
Demand for deduction in interest rates
After much deliberation at the end of the meeting, the FOMC issues a statement, which summons the evaluation of the economy and its policy decisions. There is also a note, in which it is told how the policy decision will be implemented and its full details are given.
Experts believe that the Fed Reserve will cut 25 basis points this time. This can increase inflation further in America. However, employment figures are demanding cuts in interest rates. In August, US unemployment reached 4.3 percent. The same new jobs have also reduced to just 22,000.
However, there is also tension on the issue of inflation as the Consumer Price Index (CPI) of America increased to 2.9 percent in August. There is a possibility of further boom due to the tariff of the trump. In such a situation, experts are also not expecting a big cut of 50 basis points. However, by the end of the year, there may be a cut of 50–75 basis points.
The US Federal Reserve had earlier cut interest rates on 18 December 2024. During that time it was from 4.50 percent-4.75 percent to 4.25 percent -4.50 percent. If this time the interest rate is cut by 25 basis points, then it can be 4.00 percent-4.25 percent.
Also read:
Why the deadline to file an ITR in the last minute? How long will you be able to file tax returns now?