Early indicators point to a weaker start, as GIFT Nifty futures were trading 51 points lower at 24,687 around 6:31 AM
Expectations earlier this year that the US central bank would cut interest rates aggressively after hiking them to fight inflation have moderated in recent months
President-elect Donald Trump campaigned on the promise that his policies would reduce high borrowing costs and lighten the financial burden on American households. But what if, as many economists expect, interest rates remain elevated, well above their pre-pandemic lows? Trump could point a finger at the Federal Reserve, and in particular at its chair, Jerome Powell, whom Trump himself nominated to lead the Fed. During his first term, Trump repeatedly and publicly ridiculed the Powell Fed, complaining that it kept interest rates too high. Trump's attacks on the Fed raised widespread concern about political interference in the Fed's policymaking. On Wednesday, Powell emphasized the importance of the Fed's independence: That gives us the ability to make decisions for the benefit of all Americans at all times, not for any particular political party or political outcome. Political clashes might be inevitable in the next four years. Trump's proposals to cut taxes and impose steep and ..
The price of 22-carat gold declined Rs 10, with ten grams of the yellow metal selling at Rs 70,920
At 6:40 AM, GIFT Nifty futures were trading 11 points higher at 24,228, suggesting a flat to positive start for the Indian bourses
Powell's term as chair expires in May 2026, and Trump will have an opportunity to install a new Fed chief then
The comments, just two days after Trump's re-election, portend the power struggle that may lie ahead between the central bank and a president who insists he should have a say on interest-rate policy
The price of 22-carat gold also fell Rs 10, with ten grams of the yellow metal selling at Rs 71,990
Officials voted unanimously to lower the federal funds rate to a range of 4.5% to 4.75%. The adjustment follows a larger, half-point cut in September
But prospects of heightened inflation could make policymakers wary of overheating the economy by cutting rates too deeply
In his campaign, Trump promised to wield tariffs more aggressively against US trading partners, deport millions of undocumented immigrants and extend his 2017 tax cuts
The dollar index has risen nearly 3% in October, boosted by expectations of shallower rate cuts by the Federal Reserve
The euro inched 0.2% higher to $1.099225, not far from the seven-week low of $1.09515 hit last week. The pound was at $1.31, after hitting a three-week low of $1.30595 on Monday
Markets slashed bets on a 50-basis-point rate cut at the Federal Reserve's next policy announcement on Nov. 7 - which had been above 50 per cent a week ago
Foreign funds bought debt worth 718 billion rupees in the first half of fiscal 2025, according to clearing house data, and investors expect purchases to jump by up to 40% in the second half
Powell is scheduled to address the association at 12:55 p.m
The price of 22-carat gold also climbed Rs 10, with ten grams of the yellow metal selling at Rs 71,010
US bond yields rose, as traders booked profits after a recent fall, and as yields witnessed a floor. However, the possibility that the Fed could do another outsized rate cut remain intact
The price of 22-carat gold rose Rs 10, with ten grams of the yellow metal selling at Rs 68,860
Foreign investors bet Rs 14,064 cr, most in a day in 3 yrs; rupee posts biggest weekly gain in '24