US Federal Reserve cuts rate by 25 BPS, amidst uncertainty about economic outlook remains elevated: PHDCCI
City Air News
Sep 18, 2025 10:50
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New Delhi, September 18, 2025: The Federal Open Market Committee has decided to lower the target range for the federal funds rate by 0.25 percentage point to 4 to 4.25%. This move will stimulate economic activity, support businesses, and encourage consumer spending in the US Economy, said Hemant Jain, President, PHDCCI, in a press statement issued here today.
The move along with lowered interest rate paid on reserve balances to 4.15%, is expected to enhance liquidity, stabilize financial markets and ease pressures from ongoing international developments, in the face of moderate growth of economic activity in the first half of the year, slowing job gains, and elevated inflation in the US economy, said Hemant Jain.
The Federal Reserve's rate cut is expected to positively impact India; RBI may align with this policy, lowering repo rate to bolster investment and demand further, to stimulate economic growth, he added.
Going forward, we expect the Fed to remain strongly committed to supporting a steady growth trajectory, said Jain.
