Business EconomyPosted at: Dec 11 2025 5:18PM


US Fed cuts rates again; markets turn optimistic

New Delhi, Dec 11 (UNI) The US Federal Reserve has reduced interest rates for the third time in a row, cutting the rate by 25 basis points.
With this change, the US rate now stands between 3.50-3.75 per cent.
This cut was expected, as the Fed has been trying to support the economy at a time when inflation is cooling and growth is slowing slightly. The central bank also indicated that future rate cuts will depend on how the economy performs next year.
The rate cut immediately affected global markets.
In India, stock market sentiment turned positive, with early signs showing that the Sensex and Nifty were likely to open higher.
A weaker US dollar after the announcement also helped improve confidence in emerging markets like India, as global investors generally take more interest when borrowing costs in the US are low.
Precious metals saw the biggest reaction. Silver prices jumped sharply and touched a new all-time high in India. On the Multi Commodity Exchange (MCX), silver futures hit around Rs 1.93 lakh per kg.
This rise matched the strong global trend where international silver prices also climbed. Silver has performed extremely well this year, supported by strong buying, a weaker dollar, and tight supply due to high industrial demand.
Gold prices also went up, though not as sharply as silver. Both metals benefited from the lower interest rate environment, which usually makes dollar-priced commodities more attractive for investors.
Back in India, the stock market showed signs of recovery after recent volatility. Investors became more hopeful that foreign investment could increase due to the Fed’s move.
However, markets stayed cautious because the Fed hinted that it may slow down or pause further rate cuts unless the US economy shows more weakness.
This created some uncertainty about how much support the global financial system will receive in 2026.
Asian markets also reacted positively, with most indices opening higher after the rate cut. The overall mood improved as investors expected better liquidity and easier financial conditions worldwide.
In summary, the Fed’s latest rate cut boosted confidence in global markets, pushed silver to record levels, and helped Indian stocks regain some strength. But the cautious message from the US central bank means investors will continue to watch upcoming economic data closely before taking bigger risks.
UNI SAS PRS
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