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The Fed is in no hurry to cut rates: US Federal Reserve Chief Jerome Powell is widely expected to deliver a hawkish message on interest rates to the US House and Senate in a semiannual monetary policy testimony on Wednesday and Thursday, writes Bloomberg.
The why: The Fed is worried that the “danger of moving too soon is that the job’s not quite done,” Powell told CBS in early February (watch, runtime: 13:20). US inflation data released later in the month validated his concerns that inflationary pressures persist, showing that underlying inflation rose in January by the most in eight months, up 0.4% from the month before and 2.8% on an annual basis, according to the Fed’s preferred core personal consumption expenditures price index.
Refresher: The Fed embarked on an aggressive monetary tightening policy in March 2022 in the wake of soaring inflation triggered by the Ukraine war. Interest rates are currently at a 22-year high at 5.25-5.5%, which marks their highest level since 2001.
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Down |
TASI |
12,555.20 |
-0.6% (YTD: +4.9%) |
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MSCI Tadawul 30 |
1,609.62 |
-0.9% (YTD: +3.8%) |
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USD : SAR (SAMA) |
3.75 Sell |
3.75 Buy |
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Interest rates |
6% repo |
5.5% reverse repo |
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EGX30 |
29,058.33 |
+0.3% (YTD: +16.7%) |
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ADX |
9,278.91 |
+0.3% (YTD: -3.1%) |
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DFM |
4,356.61 |
+1.1% (YTD: +7.3%) |
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S&P 500 |
5,137.08 |
+0.8% (YTD: +7.7%) |
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FTSE 100 |
7,682.50 |
+0.7% (YTD: -0.7%) |
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Euro Stoxx 50 |
4,894.86 |
+0.4% (YTD: +8.3%) |
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Brent crude |
USD 83.55 |
+2% |
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Natural gas (Nymex) |
USD 1.84 |
-1.3% |
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Gold |
USD 2,095.70 |
+2% |
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BTC |
USD 62,961.15 |
+1.6% (YTD: +180.8%) |
THE CLOSING BELL-
The TASI fell 0.6% yesterday on turnover of SAR 12.6 bn. The index is up 4.9% YTD.
In the green: AlRajhi Takaful (+9.9%), Saudi Steel Pipe (+9.9%) and Avalon Pharma (+7.6%).
In the red: Zain KSA (-6.3%), Amiantit (-4.3%) and Hail Cement (-4.1%).
