US Fed kept interest rates stable, the possibility of cutting 50 basis points this year, loud jump in gold prices
New Delhi:
The US Federal Reserve kept its benchmark interest rate in the scope of 4.25% to 4.50%, announcing the second monetary policy decision of 2025 by announcing the Monetary Policy Decision of 2025. The decision was taken after the two -day Federal Open Market Committee -Fomc meeting, which was equal to wall street estimates.
This decision has come at a time when the threat of recession and inflation in the US is increasing, which has been further increased by the recently implemented import duty (TARFF HIKES) by President Donald Trump. This is expected to deepen the Global Trade War.
According to the Fed, there may be a cut of half a percentage in the interest rate by the end of this year i.e. 50 basis points by the end of this year, given the slow growth in the US economy and the possible decline in inflation. However, Fed has increased the US inflation estimate for 2025 and has reduced economic growth.
At the same time, the market has taken this decision of Fed positively. The possibility of cutting interest rates has led to a boom in gold and stock markets.
Tremendous boom in US stock market
Wall Street witnessed a tremendous boom after keeping the fed interest rate stable and after a signal of two interest rate deduction this year. The US stock market performed best in the last eight months due to a great rise in Nasdaq Composite.
The impact of the rise in the US stock market is also being seen in the Asian Markets … South Korea’s Korea climbed 0.64%, while Kosdack rose 0.55%. However, Japan’s market remained closed due to holiday.
Gold prices at new height
After the Fed’s decision, there was a tremendous rise in gold prices. Spot gold rose 0.2% to $ 3,052.92 an ounce. During the session, it set a new record of $ 3,055.31 an ounce. While Gold Futures rose 0.7% to $ 3,061 an ounce.
Experts believe that this year, the signal of fed to continue softening in the monetary policy can lead to further rise in gold prices.
Fed next meeting will be held in May
The next meeting of Jerome Powell-LED FOMC headed by Jerome Powell will be held on 6-7 May, where the next monetary policy discussions will be considered.
