It was the first meeting of the FOMC since former President Donald Trump’s election victory. Policymakers have said repeatedly that the Fed is apolitical and that their calls on interest rates are driven by economic conditions.

Jerome Powell-led FOMC voted unanimously to slash the benchmark interest rate by 25 bps to 4.50 - 4.75 per cent in the seventh policy decision for 2024.

Jateen Trivedi, VP Research Analyst, LKP, said, "All eyes are on the outcome of the Federal Reserve's meeting tonight, as markets anticipate a second consecutive rate cut of 25 basis points, aligning with the previously indicated trajectory. The statement accompanying the Fed's decision will hold significant importance."