Fed & RBI: Shared challenges, separate turfs
SummaryThe Fed’s decision to hold rates is not surprising as pricing pressures in the US have eased significantly from the highs.
The US Federal Reserve (Fed) is back to a pause again. Following a status quo in June, and a 25 basis point (bps) rate hike in July, the Fed held its policy rate steady in September, in line with market expectations. With this, after a spate of rate hikes since March 2022, the benchmark Fed funds rate now stands at 5.25-5.50%, the highest since 2001.