MONEY MASTER

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 quirk...

Recent US interest rate cuts and China’s economic stimulus are expected to boost private equity (PE) activity in Asia by lowering funding costs and improving market sentiment, industry insiders said. These developments could make it easier for private equity firms to exit their investments, a process that has been challenging due to volatile market conditions. The US Federal Reserve cut interest rates for the first time in more than four years, with more reductions expected, easing financing constraints for leveraged buyouts . At the same time, China's broader-than-expected monetary stimulus and property market support measures aim to revive confidence in the country’s economy, with further fiscal measures anticipated. "With the Fed entering a rate-cut cycle , we expect financing conditions to improve, driving a recovery in exit activity and asset valuations," said Janice Leow , head of EQT Private Capital Southeast Asia . She noted that this would help narrow the ...

  Oil prices inched higher during early trade on Monday, supported by concerns that ongoing conflict in the Middle East may disrupt supply from the key producing region, and expectations that the recent US interest rate cut will stimulate demand. Brent crude futures for November delivery rose by 20 cents (0.3%) to US$74.69 per barrel, while US crude futures for November gained 22 cents (0.3%) to US$71.22 per barrel as of 0045 GMT. Both contracts saw gains in the previous session, buoyed by the US rate cut and a dip in supply following Hurricane Francine . The US Federal Reserve’s half-point interest rate cut last Wednesday, larger than expected, has bolstered hopes for increased economic activity and energy demand . A weaker US dollar has also boosted investor sentiment. However, concerns linger over the possibility of a slowing job market , which could affect the broader economic outlook. Further elevating prices are geopolitical tensions in the Middle East, with figh...

  US mortgage rates fell to their lowest levels since September 2022 last week, as markets anticipate a series of Federal Reserve interest-rate cuts . This drop in rates has sparked an increase in applications for home purchases and refinancing. The contract rate on a 30-year fixed mortgage declined by 14 basis points to 6.15% for the week ending Sept 13, according to data from the Mortgage Bankers Association (MBA) . This marks the seventh consecutive week of rate declines, the longest streak since 2018-2019. The 15-year mortgage rate also dropped 29 basis points to 5.42% , and adjustable-rate mortgages fell to 5.66% . Impact on Homebuyers and Refinancing The extended period of lower borrowing costs drove a 5.4% increase in the MBA’s home-purchase applications index, reaching a three-month high. The refinancing gauge surged more than 24% , marking the highest level since April 2022. Lower mortgage rates are boosting homebuilder confidence and may attract more buyers and ...

An anticipated US policy rate cut this week is expected to positively impact Malaysian stocks, particularly in the oil and gas (O&G) , real estate investment trust (REIT) , and large-cap banking sectors , according to Kenanga Investment Bank . Historically, US rate cuts have been favorable for the FBM KLCI , yielding a median return of 8% over a 12-month period following the cut. The index has shown negative returns over a 12-month horizon on only three occasions out of the past ten rate cuts, the research house noted. "As all eyes this week will be on the US at the cusp of a rate decision, sentiment on broader equities will hinge not only on the extent of the cut but more so on the US Federal Reserve's (Fed) outlook ," Kenanga stated. The Fed is expected to announce its first rate cut in more than four years on Wednesday, though there is debate over the size of the reduction as inflation has eased and the employment market has cooled. The FBM KLCI has already gai...

Gold prices could face a slight, near-term decline if the Federal Reserve decides on a modest 25-basis-point rate cut this week, according to Goldman Sachs Group Inc. However, the investment bank foresees a subsequent rally, driving the metal to a record high as increased investments flow into bullion-backed exchange-traded funds (ETFs) . “ Fed rate cuts are poised to bring Western capital back into gold ETFs, a component largely absent in the sharp gold rally observed over the past two years,” said analysts Lina Thomas and Daan Struyven . They reiterated Goldman’s forecast for gold to surge to US$2,700 (RM11,542) an ounce by early next year. Gold has been a top-performing commodity this year, climbing by about 25% and setting new records amid increased central bank purchases and expectations of the Fed's shift towards monetary easing. Investors remain divided on whether the US central bank will initiate its easing cycle this week with a half-point reduction or a more caut...

  The ringgit appreciated against the US dollar this morning, buoyed by expectations of an interest rate cut in the US following recent economic data. At 8 a.m., the ringgit rose to 4.3305/3380 against the greenback, compared to the previous day's close of 4.3330/3370 .

Annual inflation in the Philippines slowed to 3.3% in August, reaching a seven-month low as price increases in food and transport costs moderated, according to the statistics agency. This slowdown provides room for the central bank, Bangko Sentral ng Pilipinas (BSP), to further ease interest rates. Key Highlights: Inflation Data : The Consumer Price Index (CPI) rose by 3.3% in August, down from 4.4% in July, bringing the average inflation rate to 3.6% for the first eight months of the year. This is within the central bank's comfort range of 2% to 4% and marks the slowest inflation rate since January's 2.8%. Core inflation, excluding volatile food and energy prices, also fell to 2.6%. Factors Contributing to Slowdown : Easing in food and transport costs, especially rice inflation, which decreased to 14.7%, the lowest since October 2023. Tariffs on rice were reduced from 35% to 15% by President Ferdinand Marcos Jr., contributing to a slower price increase than initially expected....

  Oil prices surged on Friday, recording over 3.5% weekly gains, driven by positive economic data and signals from Federal Reserve policymakers that interest rates could be cut as early as September. The rise in prices was further fueled by ongoing geopolitical tensions in the Middle East, which raised concerns about potential disruptions to oil supply. Key Highlights: Price Increases: Brent crude futures settled 50 cents higher at $79.66 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 65 cents to $76.84 per barrel. For the week, Brent gained more than 3.5%, and WTI rose over 4%. Economic Data Boost: U.S. jobless claims fell more than expected, easing concerns about the labor market, while China's consumer price index rose slightly faster than anticipated, both contributing to the positive momentum in oil prices. Geopolitical Tensions: Escalating conflicts in the Middle East, including Israeli airstrikes in Gaza and potential retaliatory actions by Iran, ...

  Gold prices edged higher on Tuesday after reaching multi-week lows, as US central bank policymakers signaled the possibility of a September interest rate cut. The move comes amid broader market volatility and economic concerns. Key Developments Gold Prices: Spot Gold: Rose 0.2% to US$2,411.97 per ounce as of 0200 GMT. US Gold Futures: Increased 0.3% to US$2,452.60 . Recent Market Activity: Gold experienced its worst day in nearly two weeks during the previous session, as a global market sell-off was driven by mounting economic concerns. Federal Reserve and Rate-Cut Expectations Fed Policymaker Statements: US central bank policymakers have downplayed the notion that weaker-than-expected July jobs data indicates an impending recession but acknowledged the need for potential rate cuts to avoid such a scenario. Mary Daly, president of the Federal Reserve Bank of San Francisco, expressed openness to cutting interest rates if necessary and emphasized the need for proactive policy...

Asian Markets Reach New Highs Amid US Economic Concerns Asian stocks soared to a 27-month high, driven by expectations of a US rate cut in September following softer economic data. The surge in Asian markets reflects broader economic and political trends impacting global investors. Key Developments US Economic Data: Weaker-than-expected US services activity data has increased the likelihood of a Federal Reserve rate cut in September. This has boosted bonds and commodities while weakening the dollar. Political Landscape: Investors are closely watching the UK election, where the Labour Party is expected to win a significant majority. This could lead to modest tax and spending plans aimed at reducing the UK's budget deficit and closer alignment with the EU. In France, mainstream parties are expected to block the far-right National Rally from winning a majority in the upcoming election. Asian Market Performance: The MSCI Asia-Pacific index reached its highest level since April 2022,...