US Federal Reserve Meeting 2025: After keeping interest rates unchanged for five straight meetings over the past nine months, the is largely anticipated to deliver a quarter-point rate cut following its two-day September meeting.
The decision, scheduled for Wednesday, September 17, comes against the backdrop of worsening US economic indicators, especially weakness in the labour market, fueling expectations that the Fed will trim its benchmark rate by 25 basis points.
In the July 25 , the Fed Chairman signaled that upcoming policy decisions would hinge on labor market conditions. Recent data has pointed to a weakening job market, with slower hiring, more unemployment claims, and a rising jobless rate. This has fueled investor expectations that the central bank will cut its benchmark interest rate by 25 basis points on Wednesday, bringing it down to around 4.1 per cent.
What should investors do ahead of US Fed meeting?
According to Ankita Pathak, Macro Strategist and Global Equities Fund Advisor at Ionic Asset, despite higher inflation, is on track to cut 25bps this week which has already been priced in by the markets.
“All ears will be on guidance and way forward, an unexpected dovish guidance may create a meltup like scenario in US and may benefit cheap emerging markets like China and Korea. On the other hand, hawkish stance and limited scope of further policy action may spark a classic sell on news kind of trade in US. Back home, all eyes will be on FII flows which can be helped by lower dollar, earnings and RBI action ahead,” Pathak said.
On the other hand, Anshul Jain, Head of Research at Lakshmishree, said that Nifty has tested the neckline of the 25-day double bottom pattern at 24,144.85, a key bullish trigger. A sustained close above 25,145 sets the stage for a quick move toward the weekly swing high of 25,246.25. A further breakout above 25,250 would confirm strength and open the path toward fresh all-time highs, with the next resistance placed at 25,548.05.
“Looking ahead, the upcoming meeting looms large. With a rate cut widely expected, global risk sentiment is leaning positive. If the Fed delivers, the liquidity backdrop could amplify Nifty’s technical momentum and accelerate its march toward uncharted territory,” Jain added.
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