The Federal Reserve is close to achieving its long-term inflation target, a senior official has said, as the central bank begins to pivot to when it may cut interest rates.
Recent economic data has shown the Price Consumption Expenditures (PCE) Price Index has fallen to 2.6 per cent, with core inflation down to 3.2 per cent. Economic growth is projected to have grown somewhere between 1 and 2 per cent in the fourth quarter of last year.
Meanwhile, the labour market has been cooling without a sharp increase in unemployment.
“For a macroeconomist, this is almost as good as it gets,” Federal Reserve governor Christopher Waller said during a snowed-out Brookings Institution seminar in Washington on Tuesday.
Mr Waller, one of the permanent members of the Federal Reserve board of governors who vote on monetary policy decisions, noted PCE inflation had been running closer to 2 per cent over the past six months, which is near the Fed's long-term goal.
“Based on economic activity and the cooling of the labour market, I am becoming more confident that we are within striking distance of achieving a sustainable level of 2 per cent PCE inflation,” he said.
With the economy moving towards soft-landing territory, the Fed has pivoted to when it will begin cutting interest rates and by how much. Traders expect the 5.4 per cent rate to decline from March but Mr Waller said the timing and number of rate cuts would be determined by data.
December projections released by the Fed forecast three cuts this year to bring down its rate range to 4.25 per cent and 5.0 per cent.
“I see no reason to move as quickly or cut as rapidly as in the past,” he said, echoing previous Fed statements that rates will be held at an elevated level for a prolonged spell.
The Fed holds its first policy meeting of the year on January 30 and 31.
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MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
UAE currency: the story behind the money in your pockets
The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
RESULTS
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HOW TO WATCH
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The UAE squad for the Asian Indoor and Martial Arts Games
The jiu-jitsu men’s team: Faisal Al Ketbi, Zayed Al Kaabi, Yahia Al Hammadi, Taleb Al Kirbi, Obaid Al Nuaimi, Omar Al Fadhli, Zayed Al Mansoori, Saeed Al Mazroui, Ibrahim Al Hosani, Mohammed Al Qubaisi, Salem Al Suwaidi, Khalfan Belhol, Saood Al Hammadi.
Women’s team: Mouza Al Shamsi, Wadeema Al Yafei, Reem Al Hashmi, Mahra Al Hanaei, Bashayer Al Matrooshi, Hessa Thani, Salwa Al Ali.
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Power: 819hp
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Price: From Dh1,700,000
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match info
Southampton 0
Arsenal 2 (Nketiah 20', Willock 87')
Red card: Jack Stephens (Southampton)
Man of the match: Rob Holding (Arsenal)
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
New Zealand 21 British & Irish Lions 24
New Zealand
Penalties: Barrett (7)
British & Irish Lions
Tries: Faletau, Murray
Penalties: Farrell (4)
Conversions: Farrell
