Global Market Predictions: US Fed's first rate cut likely to be in June? - Investing Abroad News | The Financial Express
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The Federal Reserve maintained its key interest rate at a 23-year high range of 5.25-5.50%, during its March 2024 FOMC meeting. Fed officials predict three cuts to federal funds rate by year-end, with participants anticipating the rate to begin cutting at its June meeting. Market experts have mixed views on the timing of the rate cut, with some expecting it to happen in June and others suggesting it will depend on the personal consumption expenditure figures for February. The Fed's dot plot projections for 2024 indicate three rate cuts, but investors should remember that dot plots are poor predictors of actual policy. The Fed's forecast for the year-end fed funds rate target is 4.6%, with a range of 4.50% to 4.75%. The Fed also raised the core PCE inflation forecast to 2.6% from 2.4% and raised the real GDP forecast to 2.1% from 1.4%. Comerica Bank expects the Fed to cut the fed funds target by three quarters of a percent over the course of 2024, most likely in quarterly cuts of a quarter percentage point each at their June, September, and December decisions.
#FederalReserve #InterestRates #RateCut #FomcMeeting #DotPlot #Inflation #Gdp #EconomicForecast
America EB-5 Visa: Requirements for EB-5 immigrant visa category and Regional Center Program
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The EB-5 Immigrant Investor Program was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Investors may qualify for the EB-5 classification by investing through regional centers designated by USCIS. On March 15, 2022, President Biden signed the EB-5 Reform and Integrity Act, which created new requirements for the EB-5 immigrant visa category and the Regional Center Program. The primary condition is that an EB-5 investor must invest the required amount of capital in a new commercial enterprise that will create full-time positions for at least 10 qualifying employees. The new commercial enterprise must directly create full-time positions for a new commercial enterprise not located within a regional center, while a new commercial enterprise located within a regional center can directly or indirectly create full-time positions. USCIS distinguishes between direct and indirect jobs, with direct jobs establishing an employer-employee relationship between the new commercial enterprise and the persons it employs, and indirect jobs being held outside of the new commercial enterprise but created as a result of the new commercial enterprise. A qualifying employee is a U.S. citizen, lawful permanent resident, or other immigrant authorized to work in the United States. Full-time employment requires a minimum of 35 working hours per week. Troubled businesses and job maintenance are also considered in the EB-5 visa requirements.
#Eb-5Visa #ImmigrantVisa #RegionalCenterProgram #Uscis #JobCreation #CapitalInvestment #ForeignInvestors
US Permanent Resident Visa: Recent policy announcements that make EB-5 program more attractive for Indian investors
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The EB-5 Visa Program is one of the paths a foreign national can take to obtain a green card and become a permanent resident of the United States. Recent policy announcements by the USCIS have made the EB-5 program more attractive for Indian investors. The USCIS has rolled out several updates for the EB-5 program, including the introduction of concurrent filing, the EB-5 Reform and Integrity Act of 2022, and the fast-tracking of investments in Targeted Employment Areas. In October 2023, USCIS revised its policy on the minimum investment period required for EB-5 visa applicants, setting a clear two-year investment requirement. The launch of the online visa application system is expected to significantly enhance visa processing speed. In Fiscal Year 2023, the number of EB-5 visa applications showed a significant increase compared to previous years. The EB-5 program in India primarily attracts high-net-worth individuals and affluent families seeking U.S. residency. The future outlook for EB-5 adoption in India is positive, with around 676 EB-5 visas issued to Indians in FY 2023. The current investment requirement for the program is $800,000. USIF has held 2 roadshows in India in 2023, which have been successful in generating interest and attracting investors. The EB-5 program is considered a credible and sought-after path to obtain permanent residency in the US due to its alignment with U.S. economic goals, recent reforms, and policy changes that have made it more accessible and efficient.
#UsPermanentResidentVisa #Eb-5Program #IndianInvestors #Uscis #ConcurrentFiling #Eb-5ReformAndIntegrityAct #TargetedEmploymentAreas #OnlineVisaApplicationSystem #InvestmentPeriod #VisaProcessingSpeed #Eb-5VisaApplications #InvestmentRequirement #Roadshows #CrediblePath #PermanentResidency
Long-term portfolios poised to generate favourable returns
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Experts suggest investors consider betting on long-term debt mutual funds after the Budget for several reasons. The projected fiscal deficit for FY25 and the expected decline in gross borrowings indicate positive prospects for the bond markets. The Reserve Bank of India's consistent pause stance since April 2023 and the global bond inclusion will further enhance the flow to the debt segment, drive up demand, and bolster investor confidence. Investors should adopt a barbell strategy, allocating 40% of their funds into short-term options and the remaining into gilt-oriented funds with longer durations. Diversification across bond types, sectors, and issuers is crucial to spread risk effectively. Before investing in long-duration funds, investors should assess the fluctuation of yields and carefully consider the current interest rate environment and the risk of losses if rates rise. Comparing expense ratios and aligning investment goals and risk tolerance are also essential steps to ensure that investors select funds that suit their financial objectives and are comfortable with risk.
#MutualFunds #Long-termDebtFunds #BondMarkets #Investors #InvestmentStrategy