US Federal Reserve Chairman Jerome Powell said continued strong economic growth could warrant further interest rate increases, underscoring the uncertain economic outlook the central bank faces.
Mr Powell said the US economy is not cooling as expected, noting stronger-than-anticipated gross domestic product growth and “especially robust” consumer spending. The housing sector, too, is gaining steam again after decelerating over the past 18 months.
“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down towards our objective,” he said at the Jackson Hole symposium in Wyoming.
“Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy.”
Mr Powell's address at the Jackson Hole symposium was monitored by traders looking for clues on the Fed's next steps in bringing inflation down to 2 per cent.
The Fed has raised interest rates to the range of 5.25 per cent to 5.50 per cent since they were at a near-zero level March 2022. Traders remain split on whether there will be an additional rate increase this year, data from the CME Group shows.
Recent economic data has shown that the core Price Consumer Expenditures Price Index has dropped from a 5.4 per cent peak in February 2022 to 4.3 per cent last month. Recent readings “were welcome”, but suggested it would take more than “two months of good data” to be confident in sustained disinflation towards the Fed's 2 per cent goal.
'Navigating by the stars under cloudy skies'
A central theme of Mr Powell's address was the uncertain economic outlook that the Fed faces.
He stated his belief that its current stance is restrictive enough, but officials cannot be certain how high interest rates must be to slow down the economy.
“And thus, there is always uncertainty about the precise level of monetary policy restraint,” Mr Powell said.
“Based on this assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”
The labour market in particular has bedevilled the Fed. While previous tightening cycles have typically caused the unemployment rate to increase, that has not yet happened in this one.
And even though job openings have declined, the unemployment rate is still at a historic low of 3.5 per cent, which Mr Powell characterised as a “highly welcome but historically unusual result that appears to reflect large excess demand for labour”.
“These changing dynamics may or may not persist, and this uncertainty underscores the need for agile policymaking,” he said.
Mr Powell's remarks also mirrored the uncertainty expressed by Fed officials from their most recent meeting who feared raising rates too much could hurt the economy. Doing too little, though, could lead to entrenched inflation.
“As is often the case, we are navigating by the stars under cloudy skies,” he said.
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
SHAITTAN
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UAE Tour 2020
Stage 1: The Pointe Palm Jumeirah - Dubai Silicon Oasis, 148km
Stage 2: Hatta - Hatta Dam, 168km
Stage 3: Al Qudra Cycle Track - Jebel Hafeet, 184km
Stage 4: Zabeel Park - Dubai City Walk, 173km
Stage 5: Al Ain - Jebel Hafeet, 162km
Stage 6: Al Ruwais - Al Mirfa, 158km
Stage 7: Al Maryah Island - Abu Dhabi Breakwater, 127km
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MATCH DETAILS
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Wijnaldum (14), Oxlade-Chamberlain (52)
Genk 1
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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