US Fed Meeting Today: What to Expect and How It Could Impact Indian Markets

US Fed Meeting Begins Today: Markets Eye Possible Rate Cut Amid Cooling Inflation.

The Federal Open Market Committee (FOMC), the decision-making arm of the US Federal Reserve, began its two-day policy meeting on October 28, with the outcome set to be announced late on October 29 (early October 30 in India). The meeting comes at a crucial time, as global investors and central banks await signals on the Fed’s next steps in its monetary policy trajectory.

When and Where to Watch
Fed Chair Jerome Powell will announce the policy decision and address the media at 2:30 PM ET (12:00 AM IST on October 30). The press conference will be streamed live on the Federal Reserve’s website and its official YouTube channel.

Background: September Rate Cut and Market Signals
In its previous meeting in September 2025, the Fed cut the benchmark rate by 25 basis points, reducing the federal funds rate to 4–4.25%—the first cut in more than a year. The move was seen as a response to softening job growth and easing inflation, which has steadily declined toward 3%.

Though inflation remains above the Fed’s 2% target, officials have signalled readiness to adjust rates further if economic data continues to weaken.

What Economists Expect This Time
Analysts widely anticipate another 25-basis-point rate cut, citing the Fed’s cautious shift toward supporting growth amid a cooling labour market.

“A fresh rate cut could mark the start of a more synchronised easing cycle,” said Harshal Dasani, Business Head at INVAsset PMS. “It may lower US yields, weaken the dollar, and boost investor appetite for emerging markets like India.”

A cut would also signal confidence that inflation is under control, setting the stage for a softer monetary stance through late 2025. Futures markets are currently pricing in a near-100% probability of such a move, with expectations of another reduction before year-end.

How Markets Are Reacting
US stock markets have rallied ahead of the announcement, with major indices hitting record highs on optimism around potential policy easing.

“Markets have already priced in a 25-basis-point cut,” said market analyst Avinash Gorakshakar. “The focus now will be on Powell’s commentary about the pace and direction of further cuts in 2025.”