Trivesh D, COO of Tradejini says, “The Federal Reserve (Fed) remains resolute in its hawkish stance, aiming to combat persistently high inflation, which exceeds the sustainable 2% level. This stance has triggered mixed reactions on Wall Street, with some experts optimistic about a soft economic landing. With the Fed hinting at the end of the rate-hiking cycle, there’s potential for increased Foreign Portfolio Investor (FPI) participation in India’s growing markets, particularly for long-term investors.
Even without further rate hikes, the Fed may maintain elevated benchmark rates to curb inflation, potentially leading to credit challenges. Surprisingly, the US economy continues to outperform expectations, giving the Fed room to maneuver.”