US Fed Meeting Today: Key Decisions, Timings, and What It Means for Global and Indian Markets

Mumbai | October 29

The US Federal Reserve began its two-day Federal Open Market Committee (FOMC) meeting on October 28, with the much-awaited interest rate decision to be announced tonight, October 29, 2025. Global markets are on edge as the outcome could shape monetary trends, liquidity flows, and risk sentiment across the world — including India’s financial markets.

US Fed Expected to Announce Rate Cut Tonight

The Federal Reserve, led by Chair Jerome Powell, is widely expected to announce a 25-basis-point rate cut — its second consecutive reduction this year. If confirmed, the federal funds rate would move down to a range of 3.75%–4.00%, signalling the Fed’s pivot toward supporting economic growth amid moderating inflation and a softening labour market.

The policy statement will be released at 2:00 PM ET (11:30 PM IST), followed by Jerome Powell’s press conference at 2:30 PM ET (12:00 AM IST, October 30). The decision comes just weeks after the Fed’s September 2025 meeting, where it cut rates by 25 basis points for the first time in over a year, citing early signs of slowing demand.

How to Watch the FOMC Meeting and Powell’s Speech Live

The Federal Reserve’s October policy announcement and post-meeting press conference will be streamed live on its official channels. Viewers can follow the proceedings at the following links:

• Federal Reserve official website: https://www.federalreserve.gov/live-broadcast.htm
• YouTube: https://www.youtube.com/federalreserve
• X (Twitter): https://x.com/federalreserve

The meeting began on October 28 at 9 AM local time in Washington and will conclude tonight, followed by the release of the policy decision and Powell’s address to the media.

Government Shutdown Adds to the Uncertainty

The October policy meeting is taking place against the backdrop of a prolonged US government shutdown, which has stalled the release of key economic data. Despite limited visibility on growth and inflation indicators, the Fed is expected to proceed with a rate cut to provide support to the slowing economy.

Futures data from the CME FedWatch Tool shows a 95% probability of a 25-basis-point cut, with markets already pricing in another reduction by December 2025. If confirmed, the move would ease borrowing costs and could help stabilise investor sentiment worldwide.

Why the Fed May Cut Rates Again

The Federal Reserve operates under a dual mandate — managing inflation and promoting maximum employment. While inflation remains marginally above the 2% target, recent data indicates that the labour market is cooling, with slower job creation and lower wage growth.

In August, Chair Jerome Powell had signalled that rate cuts were likely before year-end to cushion the economy from a slowdown. Tonight’s decision, if aligned with expectations, would mark a clear shift toward a more growth-oriented policy stance.

Impact on Global and Indian Markets

A rate cut by the US Federal Reserve could have a ripple effect across global markets. Lower US yields typically boost foreign portfolio inflows into emerging economies such as India, supporting equities and bonds.

Sectors like banking, IT, and capital goods may benefit from improved liquidity conditions. A softer US dollar could also support the Indian rupee and other Asian currencies in the near term, though volatility may increase around Powell’s commentary.

What Comes Next

If the Fed goes ahead with the expected 25-basis-point rate cut, it would reaffirm the central bank’s pivot toward growth-supportive monetary policy. The decision is likely to influence global monetary trends heading into 2026, with other central banks potentially following suit.

With the Fed’s announcement due tonight at 11:30 PM IST, markets from Wall Street to Dalal Street will be watching closely for cues on the path ahead for interest rates and inflation management.