KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Federal Reserve Chair Jerome Powell held firm on keeping interest rates unchanged for the fifth straight meeting, resisting calls from the White House and two dissenting Fed officials for an immediate cut.
Key Points:
Rates on Hold: Fed maintained the target range, citing lingering inflation risks and uncertainty from President Donald Trump’s new tariffs.
Double Dissent: Governors Christopher Waller and Michelle Bowman voted for a cut, marking the first dual dissent in more than 30 years.
Market Reaction: Investors sold Treasuries, pushing the dollar higher; S&P 500 slipped. Rate-cut odds for September dropped to 40% from 60%.
Powell’s Stance:
Powell said the Fed needs more data before acting, especially with two more months of employment and inflation reports due before the next meeting.
“A reasonable base case is that the effects on inflation could be short-lived, but it is also possible that they are more persistent — and that is a risk to be managed,” Powell noted.
Tariffs and Inflation:
Trump’s tariffs on U.S. trading partners have added uncertainty to the economic outlook.
Powell said the Fed is monitoring whether businesses pass tariff costs to consumers, aiming to prevent “serious inflation.”
Balancing Act:
Powell stressed avoiding premature cuts that could reignite inflation, while also not waiting too long and hurting the labor market.
“There should be no doubt we will do what we need to keep inflation under control,” Powell said.
Summary: Powell signaled patience, keeping policy tight while waiting for more data. The Fed’s cautious stance contrasts with rising political pressure, highlighting the delicate balance between inflation control and economic risks.
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