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...
Key Takeaway: The Fed’s first rate cut of 2025 has fueled optimism, but Powell’s upcoming remarks could determine whether markets see it as a one-off adjustment or the start of a broader easing cycle.
Federal Reserve Chair Jerome Powell is set to speak Tuesday at an economic luncheon hosted by the Greater Providence Chamber of Commerce in Rhode Island. Investors will be listening closely for signals on the future path of monetary policy, following last week’s highly anticipated quarter-point rate cut that lowered the Fed’s benchmark to 4.00%-4.25%.
The move was designed to support growth as labor market data shows signs of softening. Yet Powell cautioned that the cut should not be read as the start of an aggressive easing cycle. “You could think of this in a way as a risk management cut,” he explained, highlighting that future moves would remain data-dependent.
The Fed’s updated “dot plot” reflects three projected cuts in 2025, up from two in June, but the forecasts expose deep divisions within the committee. The so-called “soft median” reveals a narrow 10-9 split among policymakers, underscoring the uncertainty over how much easing lies ahead.
Powell also pushed back against any notion of political influence, stating: “We are doing our work exactly how we always have now. People are having their arguments, and we’re having a great discussion about these issues.”
With markets already pricing in further rate cuts, Powell’s remarks on Tuesday could prove pivotal in shaping expectations for the remainder of 2025.
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