Traders across global financial markets will be glued to their screens on Friday when Federal Reserve chairman Jerome Powell is set to deliver a speech as the US central bank moves closer to cutting interest rates.
Mr Powell will deliver the keynote address at the Jackson Hole symposium in Wyoming, an annual gathering of Federal Reserve officials, other central bankers, financial organisations and academics to discuss long-term policy issues.
This year's theme is Reassessing the Effectiveness and Transmission of Monetary Policy, which will explore lessons learnt from the monetary policy response to the Covid-19 pandemic and the 2022 global surge in inflation.
“At Jackson Hole, I try to take a step back, or move to a higher level, and try to say things that have a little more generality to them and see what can we learn,” Mr Powell said at the Economic Club in Washington last month.
While no announcement on interest rates is expected, markets will be eager to hear from Mr Powell as the Fed edges closer to cutting rates for the first time since the pandemic. It has held its target range at 5.25 to 5.50 per cent since last July after aggressively raising rates in response to the US surge in inflation.
The Fed's year-plus wait on cutting rates has also meant that most central banks in the GCC, whose currencies are pegged to the US dollar, have also had to hold off on cutting interest rates.
Other advanced economies have already moved towards cutting rates. The Bank of England cut rates in August, while the European Central Bank began in June. Central banks in Sweden and Switzerland have also eased monetary policy. Mr Powell has already telegraphed a September rate cut, which markets have priced in.
US economic health
Mr Powell will speak as concerns grow about the health of the US economy, namely in the jobs market.
A monthly jobs report released two days after the Fed's July 30-31 meeting initially sparked fears of a recession as the unemployment rate unexpectedly rose from 4.1 per cent to 4.3 per cent, bringing about a period of volatility in equity markets. Those fears have since subsided.
Minutes released from that meeting on Wednesday showed some officials had seen the case for a rate cut then, with several saying a “gradual easing in labour market conditions could transition to a more serious deterioration”.
“If Powell is upbeat about the economy, this would reinforce the increasingly prevailing view that the US is likely to avoid a recession, which has triggered the recent recovery in equity markets,” Mahmoud Alkudsi, senior market analyst at ADSS, wrote to clients.
As Fed officials see the downside risks to employment as having increased, they see a decrease in the upside risks to inflation.
On Thursday, Philadelphia Fed president Patrick Harker was the latest Fed official to publicly voice his support behind a September rate cut.
"In September we need to start a process of moving rates down," he told CNBC, noting rates need to be brought down "methodically".
But holdouts still remain, with Kansas City Fed president Jeffrey Schmid telling Bloomberg TV he still is not ready to support a rate cut.
Easing inflation
For much of this year, the Fed has pushed back against moving to cut rates too soon, fearing that doing so would lead to an increase in inflation. Mr Powell defended the Fed's cautious approach after a bumpy first quarter. Since then, inflation has eased considerably.
The Personal Consumption Expenditures Price Index, the Fed's preferred inflation metric, has fallen to 2.5 per cent year-on-year, only 50 basis points off the Fed's long-term 2 per cent aim. A softer-than-expected Consumer Price Index report in June seemed to reaffirm this downwards path, amplifying rate-cut hopes. Mr Powell has said the Fed would cut interest rates before inflation falls to 2 per cent.
Teams
Pakistan: Sarfraz Ahmed (captain), Mohammad Hafeez, Sahibzada Farhan, Babar Azam, Shoaib Malik, Asif Ali, Shadab Khan, Shaheen Shah Afridi, Usman Khan Shanwari, Hasan Ali, Imad Wasim, Faheem Ashraf.
New Zealand: Kane Williamson (captain), Corey Anderson, Mark Chapman, Lockie Ferguson, Colin de Grandhomme, Adam Milne, Colin Munro, Ajaz Patel, Glenn Phillips, Seth Rance, Tim Seifert, Ish Sodhi, Tim Southee, Ross Taylor.
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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
The burning issue
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Prop idols
Girls full-contact rugby may be in its infancy in the Middle East, but there are already a number of role models for players to look up to.
Sophie Shams (Dubai Exiles mini, England sevens international)
An Emirati student who is blazing a trail in rugby. She first learnt the game at Dubai Exiles and captained her JESS Primary school team. After going to study geophysics at university in the UK, she scored a sensational try in a cup final at Twickenham. She has played for England sevens, and is now contracted to top Premiership club Saracens.
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Seren Gough-Walters (Sharjah Wanderers mini, Wales rugby league international)
Few players anywhere will have taken a more circuitous route to playing rugby on Sky Sports. Gough-Walters was born in Al Wasl Hospital in Dubai, raised in Sharjah, did not take up rugby seriously till she was 15, has a master’s in global governance and ethics, and once worked as an immigration officer at the British Embassy in Abu Dhabi. In the summer of 2021 she played for Wales against England in rugby league, in a match that was broadcast live on TV.
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Erin King (Dubai Hurricanes mini, Ireland sevens international)
Aged five, Australia-born King went to Dubai Hurricanes training at The Sevens with her brothers. She immediately struck up a deep affection for rugby. She returned to the city at the end of last year to play at the Dubai Rugby Sevens in the colours of Ireland in the Women’s World Series tournament on Pitch 1.
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COMPANY PROFILE
Company name: SimpliFi
Started: August 2021
Founder: Ali Sattar
Based: UAE
Industry: Finance, technology
Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals
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The burning issue
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THE SPECS
Engine: 3.5-litre supercharged V6
Power: 416hp at 7,000rpm
Torque: 410Nm at 3,500rpm
Transmission: 6-speed manual
Fuel consumption: 10.2 l/100km
Price: Dh375,000
On sale: now
The five pillars of Islam
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5.
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How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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FROM%20THE%20ASHES
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
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• Prioritise a shift towards working with AI and autonomous systems
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• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
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Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
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Specs
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
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A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
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