Archive · 16 Dec 2025

US Fed Cuts Rates, Restarts Treasury Purchases

US Fed Cuts Rates, Restarts Treasury Purchases

The US Federal Reserve recently cut interest rates and started buying US treasuries.

They call this 'reserve management,' but some people think it's a type of 'quantitative easing' (QE).

The Fed says they're doing this to keep interest rates stable, especially after seeing signs of liquidity tightening.

This is similar to a situation in 2019 when there was a sudden shortage of money in the financial system.

Some thought this would help Indian markets, but so far, foreign investors are still selling.

Also, US bond yields are rising, which might make Indian markets less attractive.

Sources