US Fed rate cut likely to be non-event for IT sector
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The US Federal Reserve, led by Chair Jerome Powell, is expected to announce a rate cut on September 18, 2024, after a two-day FOMC meeting. JM Financial predicts a benign impact on corporate balance sheets, with potential benefits for the IT services sector including lower equity costs, a revival in discretionary demand, and decreased interest burdens. However, the report notes that previous rate-cut cycles coincided with IT services export slowdowns, and current economic conditions differ, suggesting a lower probability of recession. The report emphasizes that while improvements are expected, they will be gradual.
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https://www.financialexpress.com/business/industry-us-fed-rate-cut-likely-to-be-non-event-for-it-sector-3614842/
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