FED'S MARCH POLICY AND ITS RAMIFICATIONS IN INDIA
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- FED'S MARCH POLICY AND ITS RAMIFICATIONS IN INDIA
The Fed considers multiple things in its risk matrix, such as setting interest rates to check inflation and promote economic growth, managing the money supply in the financial system, regulating financial institutions like banks, and maintaining financial stability during an economic crisis.
However, the Fed is charged with the twin goals of maintaining full employment and low prices. In the wake of heightened global uncertainty and increased business complexities stemming from President Donald Trump’s significant policy changes, including sweeping duties, the Fed held the rates steady. This was fully anticipated because “uncertainty around the economic outlook has increased”. But “the Committee is attentive to the risks to both sides of its dual mandate.”