India Inc Welcomes US Fed’s Status Quo

New Delhi: The US Federal Open Market Committee’s (FOMC) decision to maintain the federal funds rate at 4.25 per cent-4.5 per cent is a commendable move, given the persisting geopolitical volatilities, industry experts here said on Thursday. The US economy is witnessing rapid expansion of economic activity, with stabilised unemployment rate at low levels, boosted by solid labour market conditions.

“The status quo stance of the Fed rates is appreciable amid increased uncertainty around the economic outlook, strongly supporting maximum employment and returning inflation to its two per cent objective,” PHDCCI President Hemant Jain said.

Going ahead, the industry chamber expects the US Fed to continue to monitor the implications of incoming information for the economic outlook and be prepared to adjust the stance of monetary policy as appropriate if risks emerge.