Fed to announce policy verdict on Sept 16, eyes rate hike affecting Indian markets

The US Federal Reserve will announce its policy verdict later today, Wednesday, 16 September, and markets expect a fresh rate hike. Inflation, bond yields and oil prices are all climbing, strengthening calls for tighter monetary policy. The decision arrives at a sensitive point for global markets, as rising inflation, treasury yields and oil prices have added pressure on policymakers. At the same time, the escalating Middle East conflict adds another layer of uncertainty to the outlook. For Indian markets, the impact goes beyond equities; the rupee, foreign inflows, bond yields and gold could all react to the Fed move. Investors will watch how the currency holds, whether foreign flows shift, how domestic bond yields adjust and if gold prices get a boost as the policy shift unfolds.