The US Federal Reserve (US FED) has finally started adopting the path to soften its strict monetary policy. Fed has now moved towards rate cuts after a long time increase in interest rates. It aims to promote investment and consumption in the economy, which was under pressure due to high inflation and slow growth for some time.

However, other major central banks – such as the European Central Bank (ECB), Bank of England (BOE) and Japan’s Bank (BOJ) – have not changed their monetary policies at the moment. They are still monitoring inflation levels and global economic conditions.

Experts believe that this decision of Fed may cause a stir in global markets. American stock markets may increase enthusiasm, while emerging economies may benefit from capital flow. On the other hand, gold and other commodity prices are expected to rise due to dollar weakness.

Economists say that this step is a sign that the US is now trying to bring its economy into balance. But the challenge is that it will not be easy to speed up economic growth by controlling inflation.

On the other hand, central banks in European and Asian countries are still adopting a policy of caution. He believes that dearness can be rapid again by cutting hurry rates. This is the reason why they are currently following the strategy of “Weight and Watch”.

Overall, this decision of the Fed indicates a major change. Now it has to be seen when and how other central banks follow this path.