Did Fed just take RBI-like action? Anil Singhvi breaks down FOMC action for Dalal Street

The Jerome Powell-led US Federal Reserve’s Federal Open Market Committee (FOMC) decided to cut its key benchmark interest rates by 25 basis points on Wednesday, 10 December 2025. With this move, the Fed lowered rates to a range of 3.50 per cent to 3.75 per cent, signalling a shift in its policy stance amid elevated inflation and a weakening US job market.

The policy outcome has drawn comparisons with the Reserve Bank of India (RBI), with Zee Business Managing Editor Anil Singhvi calling it one of the most “pro-active” Fed actions in recent years.

Fed takes a proactive shift

Add Zee Business as a Preferred Source

Singhvi said the central bank delivered an RBI-style policy after a long time. Despite three FOMC members opposing the rate cut, the committee still pushed ahead with the decision.

In a key surprise, the Fed reversed its October stance and announced a USD 40 billion bond-purchase programme. This move effectively reintroduces quantitative easing, boosting liquidity in the financial system. The FOMC also raised its GDP growth forecast, signalling confidence in near-term economic strength.

According to Singhvi, liquidity through QE will enter the system immediately, making it more powerful than the rate cut alone. “US markets are viewing this as a deeper easing cycle,” he noted.

What this means for Indian markets

The dollar index weakened after the policy announcement. Singhvi said this is positive for global equities, commodities, and emerging market currencies.

He added that QE typically boosts metals and metal-related stocks, a trend that could extend to Indian markets. IT stocks may also see improved buying interest as global liquidity conditions ease.

Trump factor: Policy still not enough?

Despite the fresh liquidity boost, Singhvi said the policy may still not sit well with former US President Donald Trump. Powell—whom Trump has often labelled “stubborn”—delivered what Trump may consider a “small” rate cut.

Trump had been pressing for a cut twice as large as what the Fed delivered. Meanwhile, former Fed governor Kevin Warsh has emerged as a potential contender for the top post, should political dynamics shift in the future.

For now, markets interpret the policy as a clear easing signal, and Dalal Street is expected to track the global risk-on sentiment closely.