Federal Reserve officials earlier this month said that a strengthening economy meant that it would "likely soon be appropriate" to increase their benchmark interest rate, a strong signal that rates will be going up in September.
But minutes of their discussions released on Wednesday also revealed increasing concerns that escalating trade wars could hurt the economy.
The CME Group's tracking of investor expectations put the likelihood of a September rate rise at 96 per cent. Many economists believe another increase will follow in December.
“Another interest rate hike from the Fed is coming next month,” Paul Ashworth, chief US economist at Capital Economics, said in reaction to the minutes.
The Fed has raised rates seven times since late 2015 to make sure the lowest unemployment in nearly 50 years does not trigger unwanted inflation.
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Fed report shows tariff concerns rising among business contacts
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The Fed raised rates in March and June, pushing the federal funds rate to a level of 1.75 per cent to 2 per cent. The rate remained at a record low near zero for seven years from late 2008 to late 2015 as the central bank tried to combat the worst recession since the 1930s to encourage more borrowing by consumers and businesses.
The minutes, released after the customary three-week delay, covered the July 31-August 1 meeting. At that session, Fed officials left rates unchanged while releasing a policy statement that focused on a “strong” economy with solid growth and low unemployment.
The minutes, however, showed growing worries about the impact of President Donald Trump’s get-tough trade policies, which have imposed tariffs on billions of dollars in imports, triggering China and other trading partners to retaliate with tariffs on US goods.
“Participants observed that if a large-scale and prolonged dispute over trade policies developed, there would likely be adverse effects on business sentiment, investment spending and employment,” Fed officials said.
The minutes listed a number of potential threats from disruptions in business supply chains to potentially triggering “a severe slowdown” in emerging-market countries.
Federal Reserve chairman Jerome Powell will deliver a policy address on Friday at the Fed's annual gathering in Jackson Hole, Wyoming. Investors are watching to see if he signals any possible change in the expected course of interest rates because of the threats posed by a widening trade war.
The minutes said that if the economy remains strong as Fed officials are forecasting then “it would likely soon be appropriate to take another step” to raise rates with “further gradual increases” following.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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Kevin Gameiro 21', 51'
Ferran Torres 67'
Atlanta 4
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In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
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Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
A MINECRAFT MOVIE
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Super 30
Produced: Sajid Nadiadwala and Phantom Productions
Directed: Vikas Bahl
Cast: Hrithik Roshan, Pankaj Tripathi, Aditya Srivastav, Mrinal Thakur
Rating: 3.5 /5
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
'Gold'
Director:Anthony Hayes
Stars:Zaf Efron, Anthony Hayes
Rating:3/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
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