GCC economies to get boost from Fed move

With the US Federal Reserve holding rates again and Chairman Powell effectively implying that the US economy is undergoing a soft landing, the effect is likely to be positive for the GCC economies, an expert said.

The Fed move implies that addressing inflation is feasible without triggering a recession or substantial spikes in unemployment. Powell’s assertion finds backing in the ongoing growth of the US economy, low unemployment rates, and robust wage levels. His statement underscores the intricate interplay between inflation and unemployment, especially in a year marked by heightened uncertainties, including rising geopolitical tensions and the upcoming presidential elections. Historically, such election years tend to exert more pressure on the equities market than the post-election period.

• Business