Fed Rate Cuts: The US Federal Reserve on Wednesday cut its key interest rate by 0.25 points for the third consecutive time, but also indicated that interest rates may remain unchanged in the coming months.

Federal Reserve Chairman Jerome Powell said in a press conference that the Fed will not cut rates further in the coming months while evaluating the health of the economy. Meanwhile, Fed officials also indicated that they expect to reduce rates only once next year. On Wednesday, the Federal Open Market Committee (FOMC), the policy making committee of the Fed, has cut the overnight lending rate by 0.25 points. With this decision, the interest rate has come down from 3.5 percent to 3.75 percent, which is the lowest in almost three years.

Trump can criticize

After a two-day long meeting, Jerome Powell indicated that the Fed may avoid cutting interest rates in the coming months until the health of the economy is evaluated. US President Donald Trump may criticize this decision of the Fed because he was expecting further cuts in interest rates. The market had been expecting the Fed Reserve to cut interest rates for a long time, but since the cut took place, the Fed’s stance remained strict, hence it is being called a ‘hawkish cut’.

mutual differences within the Fed

Powell said that in the coming time, Fed officials will keep the focus on the performance of the economy. During this time it will be seen how much the economy is developing. The chairman also said that the Fed’s key interest rate is near a level that neither restricts nor stimulates the economy.

The most special thing about this decision was that three Fed officials voted against this decision, which is the highest in the last six years. Generally, Fed members work with mutual consent. Two officials voted for no change in rates, while Fed Governor Stephen Miron, appointed by Trump in September, voted for a half-point cut. This clearly reflects the growing differences within the Fed.

What will be the impact on Indian stock market?

The effect of Fed Reserve’s rate cut can also be seen on the Indian stock market. This may give a boost to rate sensitive stocks. Its effect can be seen on shares of IT companies, FMCG, oil companies and financial stocks.

Interest rate cut, but this strict stance of the Federal Reserve can affect the movement of rupee and the flow of foreign investors (FIIs). If interest rates in America remain high for a long time, then foreign investors may become less interested in Indian stock markets. Due to this, there is a sequence of ups and downs in the stock market.

However, India’s strong GDP growth and controlled inflation can prove helpful in controlling this pressure to some extent. This is also a signal for the RBI not to be hasty in making cuts so that it maintains a cautious stance in monetary policy keeping in mind the global conditions.

Also read:

Meet the country’s richest IAS, Kala Chashma was once a sensation due to his meeting with the PM.

Bitcoin price today: The US Federal Reserve on Wednesday night cut interest rates by 25 basis points. Due to this, on Thursday, September 18, the price of bitcoin gained momentum. The world’s largest cryptocurrency bitcoin has crossed the level of 1,18,000, gaining the lead today. Due to this rapid bounce in bitcoin and other crypto tokens, the valuation of the crypto market has increased by 2 percent.
As already estimated that the American Federal Reserve could deduct 25 basis points in interest rates. Along with this, the possibility of further cuts in interest rates by the end of the year has also intensified. The specific reason for the recent boom is the increase in investment in ETF, which got the support of increasing institutional demand and fed rate cut. Overall, the trust of traders and long term investors seems to be increasing.

Fed rate cut impact on crypto market

According to The Mint’s report, PI42 co-founder and CEO Avinash Shekhar said, “Crypto is digesting the cut of 25 basis points of Fed with surprising stability. Even after the initial fluctuations, bitcoin was seen moving upwards. Businessmen are divided- while some argue that the impact of interest rate cuts was already included in the price. If the Catalists came together, Bitcoin would have crossed the $ 120,000 level. ”Here, the Etherium still remains stable after the FOMC meeting. On Thursday, it crossed the $ 4,600 level with a gain of about 2 percent.

Etherium became strong

Shekhar further said, “Meanwhile, the ethrium is showing a boom as the Bulls Keer is eyeing the new record high. While the XRP is also expected to approve the ETF, which can bring its target price to a target of $ 3.66.” Other altcoins like XRP and Dogecoin also saw a strong response after the announcement, indicating that the capital rotation is taking place in the market.

What will happen in the coming time?

According to Avinash Shekhar of PI42, the crypto market is trading with vigilance despite the interest rate cuts. He said, “Overall, the market is trading with vigilance. The market is making a balance between macro policy signals and sector-specific optimism. Now it is to see whether investors in the upcoming sessions will give any response to Powell’s comments. Investors are now sight of the signs of the meeting to be held in October to assess whether it is a sign of a big policy change or just an adjoining.

Also read:

This is 1 hour in Diwali, it is very auspicious … Investment made during this time can make a rich! Learn why Muhurta is so special?

Trump Tariff: US President Donald Trump, while addressing an event in Michigan on Tuesday, again targeted Fed Reserve Chairman Jerome Pavel. At Michigan rally, Trump said, I have a person who is not doing really good work. Although Trump did not directly take the name of Pavel, but he meant to say from Pavel.

Trump again raised the issue of reducing the interest rate

Trump further said, “I want to keep my attitude towards Fed respectable and good. You should not even criticize the fed, but should allow it to do your work. But believe me, I know more about the interest rates. “Just a week ago, Trump even said that” Powel’s dismissal cannot be so soon. “Now his said what he said at Michigan’s rally shows that Trump does not have the intention of making pressure to reduce the interest rates on the Central Bank or his chairman.

Trump’s things give so much assurance that he will not try to remove the fed chairman from the post. With this, investors will breathe a sigh of relief, who were thinking that they are ready to eliminate the leadership of Fed and directly challenge his freedom. In fact, people were worried about it because the news came to the news that Trump is consulting with his team to remove Pavel from his chair.

This is Pavel’s trend regarding interest rate

Pavel says that due to Trump’s high tariff, there is a possibility of increasing inflation and decreasing growth. Pavel said that Trump’s tariff policy has created challenges in front of central banks. The Fed will first have to assess how the impact of the tariff will be on inflation and employment and to deal with these challenges, the deadline will also have to be considered. This showed that Pavel is not in a hurry to reduce tariffs recently.

Also read:

Gold Pries: Will gold prices be reduced after Akshaya Tritiya? Experts said this

Donald Trump: US President Donald Trump is currently considering ways to evacuate Federal Reserve Chairman Jerome Pavel. His economic advisor gave this information at the White House on Friday. Asked whether Powell’s dismissal is possible? National Economic Council director Kevin Haset while replying to this said, the President and his team are thinking about it. Earlier, Trump attacked Powell to reduce the interest rate in America.

Removing Pavel is not so easy

Explain that removing Pavel from the post is not so easy for Trump because the Fed Reserve is an independent body. According to the 1935 US Supreme Court’s decision, Trump has limited rights to sack the Fed Chief. In such a situation, the law can be dismissed only by giving any reason to the Fed Chief. These include misconduct, misconduct or unknown.

Pavel not in a hurry to reduce interest rate

Trump, furious on Pavel, is criticizing him fiercely these days. It was Trump who appointed Pavel as the chairman of the American Federal Reserve during his first term and now Trump is accusing him of doing politics.

In an event held in Chicago on Wednesday last Wednesday, Pavel had said that Trump has increased the tariffs more than expected. This will increase the prices of things, which can create a situation of inflation and economic uncertainty. Powell took a tough stance and said that he is not in a hurry to reduce the interest rates. First he wants to see what effect Trump’s tariff policy has on the economy.

Pressure to reduce trump interest rate

Here the trump is being pressured to reduce interest rates. After the European Central Bank’s interest rates were reduced, Trump said, Powell should have reduced the interest rates like ECB long before and now it should definitely be reduced. Oil prices and grocery goods prices have come down, eggs have become cheap. America is becoming rich due to tariff. Powell’s dismissal cannot be so soon.

Also read:

ICICI Bank will get so much crores of rupees in preparing to sell its 18.8 percent stake in this company

Trump Tariff: Jerome Powell, chairman of the US Federal Reserve, says that the tariff policy of President Donald Trump may increase inflation, slow growth. At an event held at the Economic Club in Chicago on Wednesday, Pavel said, the fed focus is just that the policy of Trump has increased inflation to a limit and not for a long time.

Trump’s tariff more than estimates: Pavel

Pavel has given strict warnings about the impact of Trump’s constant increase in tariffs. He said, “The level of tariffs declared so far is more than the estimate. Due to this, inflation can increase, economic growth may slow down, unemployment situation may arise. This is a challenge that the Federal Reserve did not have to face in half a century. ”

Citizens of the country will have to bear the burden of tariff

He says that the pressure on the labor market will increase due to increasing inflation. To understand the impact of Trump’s policy on the economy, other policy makers of Fed have also supported keeping interest rates stable. He said that unemployment is also likely to increase due to slow economy. There is also every possibility of increasing inflation, which the public will have to bear as a burden of tariffs.

Also read:

Replying to America was heavy on China, now Trump’s government tainted 245 percent tariff command