Officials at the Federal Reserve last month agreed that they want further progress on inflation before cutting interest rates again, while also saying President Donald Trump's policies could slow some of their progress, meeting minutes released on Wednesday showed.
During their January 28-29 meeting, Fed officials noted upside risks to the inflation outlook and saw no need for further cooling in the labour market.
“In particular, participants cited the possible effects of potential changes in trade and immigration policy, the potential for geopolitical developments to disrupt supply chains, or stronger-than-expected household spending,” the meeting minutes showed.
“A couple of participants remarked that, in the period ahead, it might be especially difficult to distinguish between relatively persistent changes in inflation and more temporary changes that might be associated with the introduction of new government policies.”
The January meeting was held a week after Mr Trump's inauguration. Since being sworn in, he has either moved or pledged to impose a host of measures that economists generally say would lead to higher inflation, including his tariff and immigration plans.
Officials at the meeting said those policies carry risks, “including downside risks associated with an unexpected weakening of the labour market, a weakening of consumers' financial positions, or a tightening of financial conditions”. A more favourable pro-business environment and stronger domestic spending also carry risks, the minutes showed.
The Fed left its benchmark target range unchanged at 4.25 to 4.50 per cent when it last met. Officials since then have said they need to see further evidence that inflation is cooling before resuming rate cuts.
Last week's inflation readings painted a somewhat disappointing picture for the near-term outlook. The Consumer Price Index (CPI) rose 3 per cent last month on an annual basis and 3.3 cent annually when stripping out food and energy. Both figures were above Wall Street estimates.
“After two good months of inflation data for November and December, January once again disappointed and showed that progress on inflation remains uneven,” Fed governor Christopher Waller, a permanent voting member on the rate-setting committee, said on Monday.
“If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate. But until that is clear, I favour holding the policy rate steady.”
His remarks largely reflected the sentiment from January's minutes, which showed committee members found it “was well positioned to take time to assess the evolving outlook for economic activity”.
Those inflation readings came as Mr Trump appears to impose further tariffs on imported goods. He said on Tuesday that he is looking at broadening US tariffs to include imports on cars, semiconductors and pharmaceuticals. That followed previous moves to order “reciprocal tariffs” on US trading partners, a levy on steel and aluminium imports, and more tariffs on Chinese goods.
“It will be very important to have a better sense of these policies, how they will be implemented, and establish greater confidence about how the economy will respond in the coming weeks and months,” Fed governor Michelle Bowman, another permanent voting member on the committee, said on Monday.
For now, Fed officials are content to wait on cutting interest rates until they can assess how Mr Trump's policies will affect the US economy. That uncertainty, as well as firmer-than-expected inflation, have led markets to pare back their rate-cut expectations this year. Traders anticipate only one rate cut, according to CME Group data.
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
MATCH INFO
Mumbai Indians 186-6 (20 ovs)
Kings XI Punjab 183-5 (20 ovs)
Mumbai Indians won by three runs
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
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RACECARD
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Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
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The specs: 2018 Mercedes-Benz S 450
Price, base / as tested Dh525,000 / Dh559,000
Engine: 3.0L V6 biturbo
Transmission: Nine-speed automatic
Power: 369hp at 5,500rpm
Torque: 500Nm at 1,800rpm
Fuel economy, combined: 8.0L / 100km
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022
Killing of Qassem Suleimani
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The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
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Match info
What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Mohammed bin Zayed Majlis
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Zayed Sustainability Prize
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The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
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The years Ramadan fell in May
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PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
