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US Fed Meeting Today: Time, Expectations, And Potential Impact On Indian Markets

US Fed Meeting Today: Time, Expectations, And Potential Impact On Indian Markets
US Fed Meeting: The Federal Open Market Committee (FOMC) — the policy-setting arm of the US Federal Reserve — is set to hold its key meeting on October 28–29, 2025. Global investors, economists, and policymakers are closely watching the event, as any move on interest rates could have far-reaching effects on financial markets worldwide.
Following the meeting, Fed Chair Jerome Powell will address the media at 2:30 PM ET (12:00 AM IST, October 30) to announce the committee's decision and share insights on the economic outlook.
The meeting and Powell's press conference will be broadcast live on the Federal Reserve's official website (federalreserve.gov) and its YouTube channel (@federalreserve/streams).
In September 2025, the US Federal Reserve cut interest rates by 25 basis points, bringing the federal funds rate to 4–4.25% — its first reduction of the year after over twelve months of policy stability.
The move, approved by an 11-to-1 vote, marked a clear shift toward monetary easing, aimed at supporting a cooling labour market and moderating inflation. Job growth has slowed, wage gains have softened, and several indicators suggest weaker hiring momentum.
While inflation has eased significantly from its highs, the committee noted it remains above the 2% target, warranting a cautious policy approach.
Market participants widely expect another 25-basis-point rate cut this week as the Powell-led Fed continues to balance inflation control with growth support. “An interest rate cut this week will mark the start of a synchronised policy easing phase, potentially repricing asset classes like equities, bonds, and commodities," said Harshal Dasani, Business Head at INVAsset PMS.
Dasani added that easing inflation — now near 3% — and softer economic data provide room for further policy relaxation. “A cut would likely lower US yields, weaken the dollar, and revive capital flows into emerging markets such as India," he said.
If the Fed goes ahead with another cut, it would signal the central bank's pivot toward supporting growth amid a moderating inflation trend. Futures data already reflect near-total certainty of this outcome, with markets also expecting another cut by December 2025.
Analysts believe that equity markets have largely priced in the anticipated rate cut. Wall Street indices touched record highs during Tuesday's session, reflecting investor optimism. “There is a growing possibility that the US Federal Reserve may cut the benchmark rate by 25 basis points in the upcoming policy, following the recent decline in inflation," said market expert Avinash Gorakshakar. “Equity markets appear to have largely priced in the potential cut."
Dasani concurred, adding, “Markets are fully pricing in a 25-basis-point reduction, which would bring the target range down to 3.75%–4.00%. The key focus now shifts to Jerome Powell's guidance on the path ahead for 2025."
Source: News18
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