Business EconomyPosted at: Dec 11 2025 8:02PM


US Fed rate cuts will drive growth amidst moderately paced economic activity: PHDCCI

New Delhi, Dec 11 (UNI) Amidst moderately paced economic activity, rising unemployment, elevated inflation level and uncertain economic outlook, the Federal Open Market Committee (FOMC) has decided to lower the target range for the federal funds rate by 0.25 percentage point from 3.75-4 per cent to 3.5-3.75 per cent, a business chamber said on Thursday.
Rajeev Juneja, President of PHDCCI, said in a communique here that the announcement was coupled with expansionary monetary policy measures of lowering the interest rate paid on reserve balances to 3.65 per cent (effective Dec 11 2025), undertaking open market operations as necessary to maintain the federal funds in the target range.
“Conducting standing overnight repurchase agreement operations at a rate of 3.75 per cent, standing overnight reverse repurchase agreement at 3.5 per cent and with a per-counterparty limit of USD 160 billion per day, among others, to ease liquidity conditions, and lower the cost of short-term funding” Juneja added.
This move will reduce borrowing costs for firms and households, boost investment and consumption, and thereby stimulate economic activity.
Ranjeet Mehta, CEO & Secretary General, PHDCCI said, “ Looking ahead, we anticipate that the U.S. FED will continue to carefully monitor the evolving macroeconomic landscape and adjust its monetary stance as dictated by data. We view this measure as supportive of global financial conditions, with positive implications for emerging markets, including India.” UNI SAS SSP
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