Amidst heavy tension in the Middle East, the US Central bank US Federal has not made any change in the interest rates. Fed Chief Jerome Powell has decided to keep the interest rates between 4.25 percent and 4.50 percent. This means that there is not going to be any effect on the EMI of the loan being paid by the people. In december 2024, the US Fed last cut the interest rate by 25 basis points i.e. 0.25 percent.
US Fed refuses to cut interest
It is worth noting that before the announcement of interest rates, US President donald trump had urged the US Fed Reserve to cut it, but Jerome Powell did not accept Trump's request. Market experts were expecting that unless there are some signs of decline in inflation, no change would be made in it.
The US Fed has decided not to cut interest rates at a time when there is instability in the global market. After israel killed Iran's prominent scientists and army personnel, the situation in West Asia remains quite worrying.
Markets disappointed with US Fed's decision
There is tremendous fluctuation in gold, dollar and crude oil. In such a situation, this decision of the US Fed has definitely given some relief to the global market. After a two-day meeting, the US Fed has announced that the benchmark lending rate will be kept at 4.24 percent only.
On the other hand, after the decision of the US Federal Reserve, a decline is being seen in the global markets. The Dow Jones slipped by 0.10 percent, while the S&P 500 shares also fell by 0.03 percent. The Nasdaq Composite closed up by 0.13 percent. However, President trump has criticized US Fed Chief Jerome Paulel, dismissing the concerns related to inflation.
.jpg)
click and follow Indiaherald WhatsApp channel