Fed’s Jerome Powell expected to fend off hopes of an imminent rate cut

The Fed is in no hurry to cut rates: US Federal Reserve Chief Jerome Powell is widely expected to deliver a hawkish message on interest rates to the US House and Senate in a semiannual monetary policy testimony on Wednesday and Thursday, writes Bloomberg.

The why: The Fed is worried that the “danger of moving too soon is that the job’s not quite done,” Powell told CBS in early February (watch, runtime: 13:20). US inflation data released later in the month validated his concerns that inflationary pressures persist, showing that underlying inflation rose in January by the most in eight months, up 0.4% from the month before and 2.8% on an annual basis, according to the Fed’s preferred core personal consumption expenditures price index.

Refresher: The Fed embarked on an aggressive monetary tightening policy in March 2022 in the wake of soaring inflation triggered by the Ukraine war. Interest rates are currently at a 22-year high at 5.25-5.5%, which marks their highest level since 2001.

ALSO WORTH NOTING- Abu Dhabi sovereign wealth fund ADQ is consideringlisting EtihadAirways, Bloomberg reports, citing people it says are familiar with the matter. The wealth fund has held talks with banks for a potential offering that could be “as soon as this year,” with the specific timing and size of the offering still undecided. ADQ is eyeing going after both a traditional IPO and direct listing, Bloomberg adds.

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 4.4 bn (1.2% above the 90-day average). Local investors were net buyers. The index is up 16.7% YTD.

In the green: E-finance (+12.3%), Orascom Construction (+10.7%) and Talaat Moustafa Group (+8.8%).

In the red: Mopco (-5.5%), Abou Kir Fertilizers (-4.8%) and Ibn Sina Pharma (-4.0%).