KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Scott Bessent, a top economic adviser to Donald Trump and CEO of Key Square Group, has criticized the Federal Reserve's decision to cut interest rates by half a percentage point in September, calling it a move that could undermine the integrity of the institution so close to the 2024 presidential election. He expressed concerns about the optics of the jumbo rate cut, arguing that the Fed could have waited until after the election to make such a significant adjustment.
Fed Chair Jerome Powell and other officials justified the rate cut as necessary to support a labor market that has cooled in 2024, with another half-point cut projected before the year ends. However, Bessent believes the timing of the cut raises questions, given the proximity to the election, adding that waiting two months wouldn’t have significantly impacted the economy but would have safeguarded the Fed’s reputation.
Despite repeated assurances from Powell and other policymakers that political considerations are not factored into Fed decisions, some, including Trump, have voiced concerns. Trump has called the move a “political maneuver”, though most Republican lawmakers have not openly criticized it.
Bessent also reiterated his proposal to nominate a new Fed chair well ahead of Powell’s term expiration in May 2026. This would allow markets to anticipate the policies of a so-called “shadow Fed chair”, potentially minimizing future disruptions. However, Marc Giannoni, chief U.S. economist at Barclays Capital, cautioned that this could create market turbulence by introducing uncertainty over who is guiding monetary policy.
Trump has previously stated that he would not reappoint Powell for another term, fueling speculation that he might attempt to curb the Fed's independence if re-elected. Bessent, however, pushed back on this idea, emphasizing that Trump understands the importance of central bank independence in anchoring long-term inflation expectations and maintaining economic stability.
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