US Fed Meeting Today: Key Expectations and What It Means for Indian Markets

All Eyes on US Fed Meet: Powell Likely to Announce Another Rate Cut Amid Slowing Growth.

The US Federal Reserve’s policy-setting body, the Federal Open Market Committee (FOMC), began its two-day meeting on October 28, with investors worldwide watching closely for signs of another interest rate cut.

Fed Chair Jerome Powell will announce the decision and address the media at 2:30 PM ET (12:00 AM IST on October 30). The briefing will be streamed live on the Federal Reserve’s website and YouTube channel.

Background: Policy Shift Underway

In September 2025, the Fed cut rates by 25 basis points, lowering the federal funds rate to 4–4.25% — its first reduction in more than a year. The move reflected concerns over cooling job growth and slowing inflation, which has dropped to around 3% but remains above the 2% target.

What’s Expected This Time

Analysts and traders largely expect another 25-basis-point cut, as the Fed balances its inflation goal with the need to sustain economic momentum.

“Easing inflation and weaker data give the Fed enough room to act,” said Harshal Dasani, Business Head at INVAsset PMS. “A rate cut could weaken the dollar and revive foreign inflows into markets like India.”

Market Reactions and Implications

US equities have surged in anticipation of a dovish outcome, with major indices touching record highs. “Markets have already priced in a 25-basis-point cut,” said analyst Avinash Gorakshakar. “Attention will now shift to Powell’s tone on future moves.”

If confirmed, the rate cut would signal a continued pivot toward growth-friendly policy, potentially lowering US bond yields and boosting global risk sentiment — a positive sign for emerging markets and Indian equities in particular.