US Fed May Cut Interest Rates Again

The US Federal Reserve is likely to cut interest rates once again on Wednesday, most analysts feel.

The rate cuts are likely to come even as many analysts see a recession in the US next year.

The tone of the US Federal would assume importance as many analysts feel that future rates would not be easy. Indian markets along with global markets have already rallied on hopes of further easing in the US.

US Fed May Cut Interest Rates Again

Indian stock markets are trading near record highs, led by solid buying in the last few sessions from Foreign Portfolio Investors. A cut in interest rates by the US Fed tends to push global markets higher, as investors move money away from debt into equities.

In the US too the markets have rallied with the S&P 500 trading at record highs. A further upward movement could be expected should the tone of the US Fed sound more dovish.

The U.S. central bank is expected to lower interest rates by 0.25 per cent or 25 basis points. In case they do cut interest rates, this would be the third time this year the US Fed has cuts rates. However, investors will also look for clues about the Fed's policy decisions in the future.

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