look news india
US Federal Reserve chief Jerome Powell has said that the time has come for the central bank to cut key policy rates. Powell's statement can prove to be a good sign for the Indian stock market.
There will be a positive impact on the market. The value of IT shares will increase. After this statement of the Federal Chief, the hope has been strengthened that the officials of the US Central Bank will cut the interest rate next month. Along with this, their intention has also become clear that the recession in the labor market will be removed by reducing the interest rate.
The signal is clear but the extent and timing of rate cuts will be decided based on earnings data. Apart from earnings data, interest rate cuts are based on the emerging outlook and risks. The federal chief is well aware of the recent rise in inflation rates. Inflation rates have started to slow in recent months after remaining stable earlier this year.
“I have increased confidence that inflation is on a stable path of 2%,” Fed chief Jerome Powell said, referring to the central bank's inflation target.