2023-08-23 10:25:47
He stressed that inflation appears to be more difficult compared to the expectations of the US Federal Reserve
Dubai – Al Arabiya.net
Posted on: August 23, 2023: 12:22 PM GST Last updated: August 23, 2023: 02:25 PM GST
Investors are awaiting the annual Jackson Hole symposium of central banks in Wyoming later in the week, looking for any hints of a rate hike, with a particular focus on Federal Reserve Chairman Jerome Powell’s speech on Friday.
Recently, strong US economic data has increased bets that the central bank will keep interest rates high for longer.
Raed Al-Khader, Head of Research at Equiti Group, said that the upcoming meeting of central banks this week is the most important event that is closely followed by investors to get signals regarding the path of interest rates.
Al-Khidr explained, in an interview with Al-Arabiya, that the most likely scenario is that the US Federal Reserve Chairman, Jerome Powell, will announce a trend towards increasing interest rates once more next September while keeping their levels high for the middle of next year, adding: “This scenario has an incidence rate of more than 80 percent.” %”.
He added that the most important thing is that inflation at this moment seems more difficult compared to the Fed’s expectations, which requires more pressure.
He pointed out that the reading of retail sales and producer prices are all indications that inflation is slower to decline than expected, which requires relatively high interest levels for a longer period, albeit at the expense of economic growth.
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