Decision Day Guide: US Fed expected to hold rates, weigh oil shock

Geopolitical tensions in the Middle East are directly impacting crude oil prices, which is a critical input for India's energy sector and overall inflation. The Fed's rate decision will influence global capital flows, affecting FII investment into Indian power and other sectors.

• •Investors await Powell’s signals as the Federal Reserve weighs rates steady amid US-Israeli strikes on Iran.
• •The Fed is balancing persistent inflation against slowing growth risks.
• •New projections and policy language are expected to reflect geopolitical uncertainty, labor market shifts, and rate cuts.
• •Risk flag: Unexpected hawkish stance from the Fed could trigger FII outflows.
• •Risk flag: Escalation of geopolitical tensions could lead to further oil price volatility and inflationary pressures.