In a wide-ranging discussion with lawmakers on the House Financial Services Committee on Tuesday, Federal Reserve chairman Jerome Powell painted a relatively optimistic picture of the US economy even as he pointed to balanced risks to the “strong” outlook.
He dampened concerns about negative spillover effects to the economy from the recent spike in market volatility, reiterated prior policy guidance for a further “gradual increase” in policy interest rates, and signalled his commitment to cognitive diversity to enhance good decision-making. More specifically:
1. Mr Powell observed that accelerating US expansion is occurring in the context of a "moment of global growth," when headwinds have shifted to tailwinds. This is reinforcing the domestic pro-growth impact of favourable consumption and business investment, stronger sentiment and sales, and more stimulative fiscal policy.
2. With the unemployment rate at a historically low level and the labour participation rate not moving up much, Mr Powell expressed confidence that wage growth would pick up and that the recent shortfall in inflation would prove transitory. As such, the Fed is likely to continue its gradual interest rate increases, while allowing the balance sheet to shrink to more normal levels. In responding to questions about inflation targeting, he repeated the central bank's openness to further analytical conversations on the monetary policy framework. He cautioned against using just history - that is, the traditional signal of a future economic slowdown - to interpret the implications of the recent flattening of the yield curve.
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US rates to rise gently amid strong growth
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3. The Fed chairman reiterated the need to revisit some aspects of the tighter financial regulation adopted in the aftermath of the global financial crisis, including leverage ratios. He pointed to the importance of continuing to evolve the regulatory approach to ensure the right balance between efficiency and soundness. He also stated his strong opposition to lending discrimination and "bad actors" in mortgage finance.
4. Despite prodding by lawmakers, Mr Powell refrained from commenting on policies that lay outside the direct purview of the Fed. These included questions on fiscal policy and the Deferred Action for Childhood Arrivals programme. He stressed the multifaceted importance of education and the need to lower the unemployment rate for minorities and vulnerable segments of the population.
5. Whether it came to the overall spike in volatility or questions about exchange-traded funds, Mr Powell indicated it was unlikely the strengthening economy would be derailed by the recent bout of financial instability, though he emphasised the need to monitor developments closely.
6. Finally, Mr Powell reiterated the importance of having a variety of viewpoints at decision-making tables to represent diversity of gender, race, education or experience.
Mr Powell returns to Capitol Hill on Thursday to appear before senators and conclude this semi-annual testimony on monetary policy. I suspect that, given some of the market reaction to his performance in the House on Tuesday, investors may look closely at whether he takes this opportunity to counter traders’ push to increase the markets’ implied probability of not just three rate hikes in 2018, which remains the baseline despite the uptick in yields during Tuesday’s testimony, but four.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
Review: Tomb Raider
Dir: Roar Uthaug
Starring: Alicia Vikander, Dominic West, Daniel Wu, Walter Goggins
two stars
Company%20Profile
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Imperial%20Island%3A%20A%20History%20of%20Empire%20in%20Modern%20Britain
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MATCH INFO
Jersey 147 (20 overs)
UAE 112 (19.2 overs)
Jersey win by 35 runs
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
BUNDESLIGA FIXTURES
Friday (all kick-offs UAE time)
Hertha Berlin v Union Berlin (10.30pm)
Saturday
Freiburg v Werder Bremen (5.30pm)
Paderborn v Hoffenheim (5.30pm)
Wolfsburg v Borussia Dortmund (5.30pm)
Borussia Monchengladbach v Bayer Leverkusen (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Sunday
Schalke v Augsburg (3.30pm)
Mainz v RB Leipzig (5.30pm)
Cologne v Fortuna Dusseldorf (8pm)
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
- Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
More from Neighbourhood Watch
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
