KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
In a highly unusual move, President Donald Trump visited the Federal Reserve's historic headquarters on Thursday—only the fourth such visit by a sitting president since 1937. While the official reason was to inspect the $2.5 billion renovation of the Eccles Building, Trump made it clear his real agenda was pushing Fed Chair Jerome Powell to cut interest rates.
Trump’s Message to Powell: Cut Rates—Now
Trump told reporters he would “love [Powell] to lower interest rates,” arguing the current rate of 4.375% should be “three points, maybe more” lower.
He claimed inflation is easing and the economy remains strong, suggesting Powell is “too late” in responding.
Behind the Scenes of the Fed Visit
Trump toured the building alongside Powell and lawmakers including Sen. Tim Scott and Sen. Thom Tillis.
The renovation has drawn criticism for its cost and features like rooftop garden terraces and blast-proof windows.
Reporters noted quirky moments like a room labeled “oval office” in marker—Fed staff later said it was a joke.
Powell’s Position: No Rush to Cut
Fed Chair Jerome Powell remains cautious:
He wants to wait and assess the impact of tariffs and monitor inflation, which has shown signs of creeping up.
He also sees financial conditions loosening, making borrowing easier for businesses and investors—another reason to hold off on cuts.
Political & Legal Tensions Rise
Trump drafted—but didn’t send—a letter to fire Powell, later claiming he wasn’t planning to follow through.
He even floated the idea of dismissing Powell for "fraud" related to the renovation cost, though legal experts and a recent Supreme Court ruling suggest Trump can’t fire Powell before his term ends in May.
Powell has said he won’t resign under pressure.
Markets Staying Calm—for Now
Despite the political drama:
Stocks are at record highs
Bond yields are stable
The dollar is steady
Volatility gauges remain low
Trade deals with the U.K. and Japan are done; an EU pact is near
Conclusion & Key Takeaways:
Trump’s Fed visit was unprecedented in tone and intent, making Powell’s job even tougher as the central bank weighs its next move.
Trump wants aggressive rate cuts to juice the economy ahead of the election.
Powell is focused on inflation risks and global uncertainty, choosing a slower approach.
Tensions may escalate further, but for now, markets are taking it in stride.
Bottom line: The Fed is under fire, but Powell isn’t backing down—and unless the data shifts significantly, rate cuts aren't coming just yet.
Comments
Post a Comment