Kolkata: The US Federal Reserve cut its key policy rate by 25 basis points but sent out clear signals that it will be naive to assume a similar cut in December automatically. It is “not a foregone conclusion” said Powell and highlighted that the members of the rate-setting FOMC have strong and divergent opinions on how to proceed on this sensitive next month.

The Federal Open Market Committee (FOMC) opted for the cut on a 10-2 majority. The rate is now down to the range of 3.75%-4%. This is the second consecutive rate cut of the Fed this year. After the announcement of the rate cut, Powell hinted that there is “a growing chorus now of feeling like maybe we this is where we should at least wait a cycle”. This reaction of Powell came when he was interacting with the media.

To put things i

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