The Fed expects the rate to be around 5% by end-2024, and 4% a year later, compared to today's 5.25-5.50%. These levels are higher than expectations earlier this year. Further, the strong US growth figure for the September quarter, at 4.9%, provides little incentive for rate-cutting. This has driven US treasury yields higher and roiled world markets. Geopolitical uncertainty hasn't helped either. Indian markets are closely correlated with global markets.
