The Fed cut rates by 25 bps to 4–4.25%, as expected. But new board member Stephen Miran dissented, pushing for a deeper 50 bps cut
Miran’s appointment, fresh from the White House, reflects growing political influence. Trump’s pressure challenges the Fed’s autonomy
Any erosion of the Fed’s independence could undermine global trust, destabilising markets and weakening capital flow predictability
The Fed signals two more rate cuts this year and one in 2026, even as inflation forecasts rise to 2.6%, well above the 2% target
Sticky inflation, driven partly by tariffs, may limit the Fed’s policy space and complicate the path to financial stability
Easier rates alone won’t ensure capital inflows to India. Much will depend on the outcome of India–U.S. trade negotiations ahead