As the US Federal Reserve gears up for a potential 25 basis point interest rate hike, experts weigh in on the implications for stocks, gold, and the Indian rupee, amidst rising inflation and geopolitical tensions. Discover how this pivotal decision could shape the financial landscape.

US Interest Rates: Amid rising crude oil prices, thanks to the renewed tensions between the US and Iran, and heightened concerns of inflation, all eyes are on the US Federal Reserve, which will announce its monetary policy on Wednesday, 16 September, along with the updated economic projections, which include the Fed Dot Plot.

The US Federal Reserve is widely expected to raise interest rates by 25 basis points on Wednesday, given the rise in inflation. The worst is that inflation is expected to remain elevated in the near future because of higher energy prices amid the ongoing conflict between the US and Iran.

In its last policy meeting, the US central bank kept benchmark rates unchanged in a target range between 3.5% and 3.75% for the fifth consecutive policy. However, three of the 12 members of the Federal Open Market Committee (FOMC) voted for a 25 basis point hike at the July meeting, hinting at growing discomfort among policymakers over inflation. It was the first time since September 2016 that three policymakers dissented with a unified view about the direction of interest rates.