KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Economist Joseph Lavorgna criticized Fed Chair Jerome Powell’s decision to keep interest rates elevated, arguing that inflation data no longer justifies such restrictive policy. Inflation Trends Show Weakness Lavorgna pointed out that inflation readings have come in weaker than expected for five straight months . He said any impact from tariffs would be a “one-off price level effect” rather than a persistent driver of inflation, making prolonged high rates unnecessary. He also noted the Fed’s own forecast error: March forecast: 2.7% inflation revised up to 3.0% in June Actual results: 2.5% and 2.4%, showing inflation tilted downward Rates Already Restrictive Lavorgna highlighted that the 10-year yield has traded below the Fed funds rate for nearly three years , a signal that policy is tight by historical standards. Housing and other interest-sensitive sectors remain soft. Structural View of Inflation He criticized the Fed’s research approach, saying i...