US Fed’s cuts interest rate second time consecutively, to boost emerging markets [Video]

The US Fed went ahead with a second consecutive rate cut this year of 25 basis points, which may turn out to be bullish for emerging markets like India, market experts said on Friday.

It wasn’t a surprise when the US Fed cut interest rates by 25 basis points (bps) to 4.75 per cent and given the US macro indicators, the rate cuts now are rather pre-emptive.

The US Fed’s move came amid cooling inflation and a weakening labour market, marking the second rate cut in this easing cycle.

“Since earlier in the year, labour market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 per cent objective but remains somewhat elevated,” the Federal Open Market Committee (FOMC), the central bank’s policy-setting body, said on Thursday in a statement.

In support of its goals, the committee decided …