KUALA LUMPUR, Jan 27 (Bernama) -- Bursa Malaysia finished in the negative territory today dampened by subdued trading observed across the board ahead of the upcoming Chinese New Year (CNY) festive holidays, said an analyst. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 14.76 points, or 0.94 per cent, to end at its intraday low of 1,558.97 compared to Friday’s close of 1,573.73. The benchmark index opened marginally lower by 0.42 of-a-point at its intraday high of 1,573.31 and moved in a downtrend path towards closing. Market breadth was negative with decliners thumping gainers 782 to 235, with 415 counters unchanged, 916 untraded and 60 suspended. Turnover narrowed to 2.76 billion units valued at RM2.38 billion compared to 3.0 billion units valued at RM3.06 billion registered last Friday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the thin trading volume today indicated a clear retreat by investors ...
Two Federal Reserve officials have signaled that it may soon be appropriate to begin lowering interest rates, advocating for a "gradual" and "methodical" approach to the pace of cuts. Boston Fed President Susan Collins and Philadelphia Fed President Patrick Harker both highlighted the importance of cautious action to maintain economic stability while continuing to address inflation.
Key Takeaways:
Gradual and Methodical Rate Cuts: Both Collins and Harker stressed the need for a gradual pace of rate cuts, starting soon, to ensure that the U.S. economy remains stable. Collins emphasized that she sees no major economic "red flags," suggesting that a cautious approach to easing is appropriate to preserve the labor market while continuing to bring inflation down.
Divergence Among Fed Officials: While Collins and Harker are aligned on the need for gradual easing, Kansas City Fed President Jeffrey Schmid expressed more caution. Schmid indicated that he is not yet ready to support a rate cut, emphasizing the need for more data before making any decisions. This divergence highlights ongoing debates within the Fed regarding the timing and magnitude of potential rate cuts.
Economic Conditions and Labor Market: Despite a recent upward revision in the unemployment rate to 4.3%, Fed officials note that the labor market remains strong, with layoffs not significantly increasing. The data, including a significant downward revision of job creation figures for the past year, suggests that the economy is cooling in an orderly manner. This orderly cooling supports the case for a gradual approach to monetary easing.
As investors await Fed Chair Jerome Powell’s speech, the focus will be on how quickly policymakers might move to cut rates and what factors will influence the pace of future monetary easing. The Fed's cautious stance reflects a balance between supporting economic growth and ensuring inflation continues to trend towards its 2% target.
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