US Inflation Rate: The US Federal Reserve has again announced a cut in interest rates. As per estimates, the Fed Reserve announced a cut in interest rates by 0.25% late on Wednesday night. This is the third consecutive time that the Fed has reduced the interest rate. With this cut, interest rates in the US have come down by 0.25% to between 4.25% and 4.5%. Apart from this, the reverse repo rate has been reduced from 4.55% to 4.25%, a cut of 30 basis points.

Interest rate may come between 3.75 to 4 percent

The Fed has projected a 50-50 basis point cut in the years 2025 and 2026. That is, Jerome Powell can reduce the interest rate to a range of 3.75 percent to 4 percent by the end of 2025. The US central bank has said that recent signals clearly show that economic activity is continuing at a strong pace. The Fed admitted that inflation is still high. The Fed said, since the beginning of the year, the labor market situation has improved and the unemployment rate has increased but is still low. Inflation has moved towards the target of 2% but it is still high.

Interest rates will be cut only twice next year!
Fed chief Jerome Powell said that we are close to achieving the employment and inflation targets. Inflation has increased slightly in the last few months, due to which the number of interest rate cuts next year has become less than expected. The Fed's estimate about the interest rate cut next year has changed. Earlier it seemed that next year the interest rate would be cut four times, but now the interest rate will be reduced only twice.

Inflation expected to reach 2.5%
Apart from this, the Central Bank has also increased the inflation forecast for next year. Earlier it was thought that next year inflation would be around 2.1%. But now the expectation for inflation is up to 2.5%. Experts had already predicted that the Fed will slow down the pace of interest rate cuts next year, because inflation has increased slightly in recent times. For this, the interest rate needs to remain high for some time. For the changes in the interest rate in the coming time, the Fed said that it will carefully assess the incoming data, changing economic scenario and balance of risks.

The Fed Committee is ready to adjust the monetary policy stance appropriately if risks emerge that may hinder the achievement of the inflation target. With this rate cut, the Fed has cut the interest rate by a total of one percentage point this year. Current estimates suggest that the Fed may keep the key interest rate between 3.75-4% by the end of 2025.

Indian market may fall
after US Federal Reserve reduced the expectation of interest rate cut next year. Apart from this, most of the markets closed with red marks. After this, Sensex and Nifty are expected to open lower in Indian stock market. The three major indices of US stock market have seen the biggest single day fall in the month. Earlier on Wednesday also Indian stock market closed lower.