The United States announced a 50 basis point interest rate cut, a change after 4 years

On Wednesday evening, the Federal Reserve announced a 50 basis point rate cut. This is the first time the Federal Reserve has decided to cut interest rates since the 2020 COVID-19 pandemic. The Fed’s decision was considered contrary to the expectations of market experts. In fact, experts had expressed hope that the Fed would cut interest rates by 25 basis points.

Reduce by 50 basis points

For more than a year, the Federal Reserve has maintained its policy rate in the range of 5.25%-5.50%. We tell you that there are news of interest rate cuts in many countries around the world. Many countries such as the United Kingdom, Mexico, Sweden and Canada have announced interest rate cuts.

Also read: Poor students in Naxalite areas will get interest-free education loans, in a major announcement by the state government.

The Fed’s decision goes against the experts

In fact, most market experts believed that the Fed would cut the rate by 25 basis points. But it finally decided to cut it by 50 basis points. After the Fed’s decision, all eyes are now on the Reserve Bank of India. But it is worth noting that the Reserve Bank of India has not adjusted the repo rate for 8 consecutive times.

But it is said that if the US Federal Reserve makes any decision, it will affect global stock markets.