banner_ad

US Fed Cut

This query is : Resolved 
Profile Image

Profile Image

(Querist)
12 December 2007 What is US Fed Cut and How does US Fed Cut effect the Stock Market? Can someone please explain it in detail?
Profile Image

Abhinav Khemani

Profile Image

Abhinav Khemani (Expert)
12 December 2007 Fed Cut refers to the reduced interest rate at which US financial Institutions can borrow money from the US Reserve Bank. It is similar to the concept of REPO and reverse REPO in India.

1. Because of fed cut, money costs less and that such money comes to the stock market. Prices of the stocks rises on account of huge inflow of money.

2.Companies can borrow at lower rates, meaning that they spend less in interest charges. This means that the money goes to profits, boosting share prices.

Regards'
Abhinav Khemani
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details