Economist: U.S. Rate Cut Signals Major Shift in Monetary Policy

Economic analyst Ibrahim Hosni stated that the U.S. Federal Reserve’s decision to cut interest rates for the second consecutive time in a short span “clearly marks a significant shift in the direction of American monetary policy.” He noted that the central bank’s priority has now shifted from combating inflation to supporting economic growth. n nDuring a phone interview on the program “Money and Business” on Extra News, Hosni explained that this policy pivot follows the Federal Reserve’s observation of genuine signs of economic and labor market slowdown. He emphasized that the move is a proactive measure aimed at preventing an economic downturn. According to him, the Fed is entering a phase of deliberate monetary easing—not just a temporary rate adjustment—intended to lower borrowing costs and stimulate economic activity. n nRegarding global market impacts, Hosni pointed out that lower U.S. interest rates typically encourage investors to seek higher returns in emerging markets, potentially increasing capital inflows to these economies. However, he cautioned that this time the effect may be uneven. With heightened geopolitical risks and currency volatility, investors are likely to favor countries with strong financial stability and robust foreign reserves. As a result, not all emerging markets will benefit equally. n nOn commodity markets, Hosni predicted that the rate cut could fuel a renewed upward trend in gold prices, as the metal tends to gain appeal during periods of dollar weakness. He maintained that gold’s medium- to long-term outlook remains bullish, though a short-term price correction could follow the strong four-month rally. n nAs for oil prices, he noted that accommodative monetary policies generally boost economic activity and energy demand. If the easing cycle continues and geopolitical conditions remain stable, oil prices could experience a gradual rise. He added that markets often price in such expectations in advance. n— news from (اليوم السابع)n

— News Original —nالرئيس الصيني يحضر الجلسة الأولى للاجتماع الـ32 للقادة الاقتصاديين لمنتدى التعاون الاقتصادي لمنطقة آسياnالرئيس الصيني يحضر الجلسة الأولى للاجتماع الـ32 للقادة الاقتصاديين لمنتدى التعاون الاقتصادي لمنطقة آسيا-الباسيفيك ويلقي كلمة مهمة العربية CGTN

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