US Federal Reserve keeps rates unchanged as policymakers balance Iran war and macro data

The Fed's rate decision is a key global macro event influencing FII flows and overall risk appetite for emerging markets. A neutral stance, as expected, avoids negative shocks and supports the current positive sentiment in Indian markets.

• •The US Federal Reserve held interest rates steady.
• •The decision balances moderating economic growth with rising geopolitical tensions and persistent inflation concerns.
• •Indian markets reacted positively, extending gains.
• •The Fed's decision was largely anticipated, with analysts expecting a neutral impact on equities.
• •Risk flag: Escalation of Iran war or other geopolitical tensions