The US Federal Reserve cut rates by 25 basis points, but markets fell as the S&P 500 dropped 3 per cent and bond yields hit 4.5 per cent
Inflation remains above the Fed's 2 per cent target and is projected to reach 2.5 per cent by 2025, dimming hopes for major rate cuts
Trump’s proposed tariffs, particularly on Chinese imports, could raise US consumer prices, increasing inflation and complicating Fed policy
Higher US rates strengthened the dollar, pressuring emerging markets. The rupee crossed ₹85, with RBI interventions cutting forex reserves by $50 billion since September
The rupee’s overvaluation risks trade competitiveness. Gradual adjustment could balance exports and inflation, shaping RBI policy
Clarity on US policies and inflation is expected soon, but markets must adapt to high volatility as central banks adjust strategies