In lowering the benchmark overnight lending rate to a range of 1.75% to 2.00% on a 7-3 vote, the Fed's policy-setting committee nodded to ongoing global risks and "weakened" business investment and exports.
The Fed's apparent change in stance is mainly guided by inflation readings and global growth concerns.
While the dovish tilt is a blessing, the Flash PMIs re-ignite concerns over the slowdown
Disturbance in nickel production in Brazil might act as a boost for prices in the near term
We always ignore culture and values and work towards the balance sheets only to be surprised in the next financial crisis
Ambareesh Baliga said the macro numbers have been disappointing all through and going ahead, we have the likely Fed rate hike, Gujarat election outcome, so investors might not keep huge positions.
James Glassman, Senior Economist at JP Morgan thinks the Fed is likely hike at least two times this year.
Rajan, who was chief economist at IMF, said if a policy has positive effects on both home and foreign countries, and therefore on global welfare, it would definitely be rated green.
According to Christopher Palmer, Henderson Global Investors Fed will stick to announcing the end of quantitative easing.
A visibly upset economic affairs secretary Arvind Mayaram said that the maths behind this conclusion was "questionable" and was nothing short of crystal ball gazing.