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Explained: Significance of US Federal Reserves rate cut and its impact on India | Explained News, The Indian Express

Explained: Significance of US Federal Reserves rate cut and its impact on India | Explained News, The Indian Express

Written by Anil Sasi |Edited by Explained Desk |New Delhi |Updated: August 1, 2019 7:29:39 am

Explained: Significance of US Federal Reserves rate cut and its impact on India

The cut in interest rates on Wednesday is the first time since the 2008 financial crisis. What is ironic is that this move comes despite a strong US economy and indicators such as job market data showing renewed buoyancy.

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Federal Reserve Chairman Jerome Powell. (Source: REUTERS/File)


The US Federal Reserve has announced a quarter-percentage-point cut in interest rates — the first rate cut by the US central bank in 11 years. What makes this even more significant is that barely six months ago, the Fed was on a hawkish rate-hike trajectory, moving in the direction of bolstering its debt-laden economy.

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