1 February 2026
Week in Review: U.S. Confidence Slides in January
After three consecutive cuts, the Federal Reserve left the fed funds rate unchanged at 3.50%–3.75%, in line with expectations, in a 10–2 vote, with two officials favouring a 25-basis-point reduction. The accompanying policy statement struck a more constructive tone on growth, noting activity has been expanding at a solid pace, while inflation remains somewhat elevated and labour market conditions are showing signs of stabilisation. At the press conference, Chair Jerome Powell said rates did not appear “significantly restrictive” given economic momentum and reiterated that decisions would be taken on a meeting-by-meeting basis.
On Friday morning, U.S. President Donald Trump nominated former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as Fed chair when Powell’s term expires in mid-May, subject to Senate confirmation. Warsh served from 2006 to 2011 and was a finalist for the role in 2017. He is viewed as a pragmatist who argues the Fed has strayed from its mandate and that its balance sheet is excessive, with his nomination seen as largely easing recent concerns over central bank independence. The announcement sparked a rebound in the dollar, weighing on precious metals and pushing gold and silver lower after investors had piled into the sector.
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Market Moves of the Week
The South African Reserve Bank held its repo rate at 6.75% at its first policy meeting of 2026, with the Monetary Policy Committee opting for caution amid ongoing global and domestic uncertainty and inflation expectations still above the 3% target. While two members favoured a 25-basis-point cut, the majority preferred to maintain the current stance, and the Bank’s projections continue to anticipate gradual easing as inflation trends lower. Governor Lesetja Kganyago noted that inflation is contained but services price pressures persist, and decisions will remain data dependent as the economy navigates risks including currency and administered price developments.
Similar to global peers, the JSE All-Share Index fell 1.83% over the week, dragged lower by a 4.60% drop in resources, while industrials (-1.11%) and SA property (-0.52%) also detracted from returns. Financials were the only sector to record gains, rising 0.44%. In currency markets, the rand strengthened earlier in the week to around R16 per dollar—its firmest level since mid-2022 on the back of elevated gold prices—before ending Friday at R16.13 after a rebound in the dollar, leaving it 0.13% weaker over the week.
Chart of the Week:
.Credits: Strategiq
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