???? Fed’s Powell: No Rush to Cut Rates

Hala,

???? Four suspects arrested in California for a $141K insurance scam, staging "bear attacks" on luxury cars—while wearing a bear costume!(1) ?? Rolls Royce? Mercedes? Turns out, their "wild" claims were just a beary bad lie. ??

amana’s Take

• Bitcoin slipped below $87,000 after the Fed hinted at tapping the brakes on rate cuts. That’s a $6,500 drop from its record high earlier this week—crypto bulls just got a reality check.
• CME futures premiums are shrinking, and bearish options are piling up. Looks like traders are starting to play it safe, dialing back the risk appetite that drove that wild 30% post-election surge.
• A cool $4.3 billion flowed into U.S. Bitcoin ETFs post-election, pushing assets to $93 billion. But until policy plans stop being a guessing game, expect more volatility—and a lot of nail-biting from crypto investors.

Stock Market Update

??↘? U.S. stocks took a dip on Thursday as Fed Chair Jerome Powell hinted the robust economy calls for a bit of patience before more rate cuts take the stage. The Dow dipped 0.47% to 43,750.86, the S&P 500 slid 0.6% to 5,949.17, and the Nasdaq 100 fell 0.66% to 20,896.67.(2) Guess the Fed’s playing the long game. ????

???? Meanwhile, Gulf markets played tug-of-war: Abu Dhabi rose 0.3% to 9,400, Dubai dipped 0.1% to 4,729, as inflation jitters and Fed speculation stole the spotlight.(3) ??

???? Powell's Precision Play!

Jerome Powell, the Federal Reserve’s own needle-threader extraordinaire, reaffirmed that the central bank isn’t rushing into slashing interest rates.(4) Speaking in Dallas, Powell emphasized the importance of navigating “between the risk that we move too quickly and the risk that we move too slowly” to balance economic growth and inflation. It’s a delicate dance on the tightrope of monetary policy, with Powell eyeing a soft landing in an economy still flexing its muscles. ????

?? Key Threads to Follow:

• Growth Gains: Powell dubbed U.S. economic growth “the best of any major economy,” despite an October jobs report that was more drizzle than downpour.
• Inflation Focus: Inflation progress is “broad-based” but not yet at the 2% sweet spot. The October numbers flirted at 2.3%, or 2.8% if you skip the snacks and fuel.
• Rate Riddle: With rates now between 4.5% and 4.75%, Powell’s aiming for a “neutral” policy that won’t tip the scales. The destination? TBD.

???? Stitching the Future of Finance

Powell’s message was clear: think slow and steady, like perfecting a couture garment. “We’re navigating between moving too fast and too slow,” he explained, likening the Fed’s strategy to finding the middle lane in bumper-to-bumper traffic. The next moves on the rate roadmap? Fewer drastic turns, more careful recalibration. The Fed’s bond balance sheet, meanwhile, is shedding assets quietly—no clues yet on when that thread will end. One thing’s certain: Powell’s fine needlework is far from over. ????

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Closer to Home?

• ?? Saudi Arabia’s inflation inched up to 1.9% in October from 1.7% in September, fueled by rising housing costs. Seems like even inflation needs a roof over its head!(5) ??
• ?? Abu Dhabi’s aviation titan, Etihad Airways, reported a 66% profit jump to AED 1.4B ($381M) in the first nine months of 2024, up from last year’s AED 814M, thanks to a 35% surge in the number of passengers.(6) Talk about a smooth ascent! ??
• ?? UAE’s retail giant Lulu’s trading debut kicked off at AED 2.04 ($0.55), then wobbled between AED 1.99 and AED 2.05 before closing flat at AED 2.04 ($0.55). With 247 million shares traded and AED 500M turnover, it was livelier than a Black Friday frenzy!(7) ??

What Else Is Trending

• ?? U.S. producer prices index (PPI) rose 0.2% in October, up from a revised 0.1% in September. With airline fares and portfolio fees climbing, inflation’s cooldown seems to be hitting some headwinds!(8) ??
• ??? Meanwhile, oil prices nudged higher on Thursday, though 2025’s looming surplus looms like a raincloud over the rally. WTI rose 0.39% to $68.70 and Brent added 0.39% to $72.56.(9) ?
• ?? In precious metals, a strong dollar dulled spot gold’s shine, easing 0.1% to $2,570.05 per ounce, but December rate-cut dreams kept its glitter alive!(10) ?

??Quote of the Day

“We want to go down the middle and get it just right.” – Jerome Powell

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amana.app

Sources::(1) BBC, (2) (4) (9) (10) CNBC, (3) (5) (6) (8) Reuters, (7) Zawya