The US Federal Reserve’s latest rate decision could have several spillover effects on the Indian economy, particularly through the rupee, foreign portfolio investments, domestic equities, bond yields and monetary policy. The Federal Open Market Committee (FOMC) increased the federal funds rate by 25 basis points on Wednesday, taking the target range to 3.75 per cent-4 per cent. Policymakers have also indicated the possibility of another rate increase later this year.
