US Federal Reserve cuts interest rate by 25 basis points

US Federal Reserve cut interest rate by 25 basis points or 0.25%, yesterday. This was as per expectations. The benchmark Federal funds rate now stands at 4%-4.25%. It also indicated that it may go for two more interest rate cuts in 2025.

US President Donald Trump’s nominee on Federal Reserve board, Stephen Miran, voted for a 50 basis points rate cut. This is the first rate cut by the US central bank this year. It came in the face of sharp slowdown in creation of new jobs and intense political pressure from President Trump to cut down interest rate.

US markets ended the day on a mixed note

Nasdaq ended the day, yesterday, 17^th September, down by 72.63 points or 0.33%. S&P 500 ended the day, down by 6.41 points or 0.097%. Dow Jones ended the day, up by 260.42 points or 0.57%. Technology stocks saw some selling pressure, yesterday. Nvidia’s shares ended the day, down by 2.60%.

European markets also ended the day, yesterday, on a mixed note. Euro stoxx 50 ended the day, down by 2.61 points or 0.049%. Dax ended the day, up by 29.94 points or 0.13%. FTSE 100 ended the day, up by 12.71 points or 0.14%.

Asian markets have started the day today, mostly in green. At 8:50 a.m. 18^th September, 2025, Nikkei 225 is up by 487.05 points or 1.09%. Hang Seng is down by 81.76 points or 0.30%. Shanghai index is up by 9.65 points or 0.25%. Kospi is up by 35.31 points or 1.03%.

Indian equity markets may see some short term profit booking today, after the gains of yesterday. Markets have already factored in a 25 basis points rate cut by US Federal Reserve.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: Dow Jones