The US Federal Reserve’s two-day policy meeting is underway, with markets bracing for a closely watched decision on interest rates. The Fed is widely expected to deliver a 25 basis point hike on Wednesday, which would mark its first rate increase since July 2023.
While the rate hike is largely priced in, investors will turn their focus to the Fed’s updated economic projections and “dot plot” for clues on the pace and extent of further tightening. Persistent inflation, elevated energy prices and geopolitical tensions have complicated the outlook, keeping the risk of higher-for-longer rates firmly in focus.
The outcome and Fed Chair Kevin Warsh’s commentary could have significant implications for global bond yields, the US dollar, capital flows and emerging-market currencies and equities, including the Indian rupee and D-Street. Follow our live blog for all the key developments, market reactions and expert commentary through the Fed decision.