The US central bank will continue to move carefully but will not hesitate to tighten policy further if needed to contain inflation, Federal Reserve Chairman Jerome Powell has said.
“If it becomes appropriate to tighten policy further, we will not hesitate to do so,” Mr Powell said in opening remarks prepared for a panel discussion at an International Monetary Fund conference in Washington on Thursday.
“We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data and the risk of overtightening,” he said.
Mr Powell said policymakers are committed to ensuring interest rates are high enough to return inflation to their 2 per cent target, but added that “we are not confident that we have achieved such a stance”.
The tenor of Mr Powell’s comments reinforced that policymakers are not ready to declare an end to their tightening campaign, even though financial markets and many economists have concluded the central bank is done raising rates.
Mr Powell said the supply-side benefits that have helped slow inflation so far may have run their course, and repeated that stronger growth could warrant further tightening.
“We still believe the Fed is done hiking for this cycle, but today’s speech should serve as notice that their rhetoric must stay hawkish until they’ve seen further improvement in inflation,” JP Morgan Chase chief US economist Michael Feroli said in a note to clients.
Treasuries extended their losses from a poorly received 30-year bond sale after Mr Powell’s remarks, and the market pushed the timing of the Fed’s first expected quarter-point rate cut out to July from June next year.
US central bankers are trying to assess whether they need to take their benchmark policy rate slightly higher, and debating how long they should hold rates at elevated levels.
The policy-setting Federal Open Market Committee last week held rates at 5.25 per cent to 5.5 per cent range, the highest level in 22 years.
Inflation has decelerated but remains above the Fed’s target, at 3.4 per cent for the year through September. Fed officials are set to meet again on December 12 and December 13.
In his speech, the Fed chief said it was not clear how much more inflation progress can be made in the future through supply-side improvements.
“Going forward, it may be that a greater share of the progress in reducing inflation will have to come from tight monetary policy restraining the growth of aggregate demand,” Mr Powell said.
He also suggested the central bank will undertake another review of its policy framework beginning in 2024, after announcing an overhaul in 2020.
“Among the questions we will consider is the degree to which the structural features of the economy that led to low interest rates in the pre-pandemic era will persist,” Mr Powell said.
“With time, we will continue to learn from the experience of the past few years, and what implications it may hold for monetary policy.”
The Fed chief participated in a panel discussion with Bank of Israel Governor Amir Yaron, IMF First Deputy Managing Director Gita Gopinath and Harvard University economist Kenneth Rogoff.
Shortly after he began speaking, Mr Powell was hustled out of the conference room as a group of about a dozen environmental protesters jumped on stage. Brandishing a banner, they chanted and spoke out for about five minutes before departing.
Specs%3A%202024%20McLaren%20Artura%20Spider
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%203.0-litre%20twin-turbo%20V6%20and%20electric%20motor%3Cbr%3E%3Cstrong%3EMax%20power%3A%3C%2Fstrong%3E%20700hp%20at%207%2C500rpm%3Cbr%3E%3Cstrong%3EMax%20torque%3A%3C%2Fstrong%3E%20720Nm%20at%202%2C250rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3E0-100km%2Fh%3A%3C%2Fstrong%3E%203.0sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%20%3C%2Fstrong%3E330kph%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh1.14%20million%20(%24311%2C000)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
COMPANY PROFILE
Name: Cofe
Year started: 2018
Based: UAE
Employees: 80-100
Amount raised: $13m
Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group
Global state-owned investor ranking by size
1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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Killing of Qassem Suleimani
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
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
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
Summer special
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Dunki
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More coverage from the Future Forum
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The most expensive investment mistake you will ever make
When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.
“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.
This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).
Age
|
$250 a month
|
$500 a month
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$1,000 a month
|
25
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$640,829
|
$1,281,657
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$2,563,315
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35
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$303,219
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$606,439
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$1,212,877
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45
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$131,596
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$263,191
|
$526,382
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55
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$44,351
|
$88,702
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$177,403
|
MANDOOB
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FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
AL%20BOOM
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent