The day was busy in finance and politics, from Wall Street’s rise on Powell’s rate cut hints to Canada’s softening of its stance on US tariffs to Donald Trump’s demand for $2 billion dollars to revamp Washington.
The biggest stories in the news today.
Powell announces possible rate reductions as Wall Street soars
In his Jackson Hole Symposium address, US Federal Reserve chair Jerome Powell adopted a cautiously-dovish tone. He acknowledged that the risks of growth and inflation may have changed in a way that could justify lowering interest rates in the near future.
Powell, who avoided making any firm promises, stressed the importance of the upcoming data on inflation and jobs for Fed’s meeting September 16-17.
The markets interpreted the comments as an invitation to increase bets that a cut was imminent.
The traders now expect a near 90% likelihood of an easing in the next month. This is up from 75% just before Powell’s speech.
Wall Street’s response was swift: The Dow Jones, which had risen over 900 point to an all-time record, S&P 500, with its largest one-day gain since May and Nasdaq, which rose almost 2%, were the most notable.
Jackson Hole’s tone underscored the opportunity and uncertainty that monetary policymakers face as they decide how aggressively to move.
Canada takes steps to reduce tensions with Washington
Canada, north of the border is said to be preparing to remove several retaliatory duties on US products in an effort to restart stagnant trade negotiations.
Ottawa has softened its tone, although tariffs will still be placed on certain sectors, such as steel and aluminum.
Mark Carney has slowly shifted from his initial promise in April to fight Donald Trump’s tariffs to a more pragmatic attitude.
Carney will be speaking to the media later today. The markets have already reacted.
After reports about the movement, the Canadian dollar continued to gain ground and rose 0.5% against US dollars.
The tariff reduction is seen as a gesture of goodwill to help unblock the negotiations, even though the two parties are still far apart in their visions for a comprehensive framework on economics and security.
Trump wants $2 billion to make Washington better
Trump announced plans in Washington to ask Congress for $2 billion to repair the parks, infrastructure and medians of Washington. He also pledged to take tougher steps to combat crime.
Trump said to reporters that he expected Congress would approve the funds. He added that the money will be “wisely spent” by Clark Construction in projects throughout the city.
Trump had earlier deployed the National Guard and asserted control over Washington police, even though official statistics showed violent crime was at its lowest level in three decades.
The latest funding request is seen by critics as a part of Trump’s broader attempt to assert authority over the Democrat run city.
However, the president insisted that these measures were necessary to make sure visitors don’t “go home with a dead body.”
The post Evening Roundup: Powell Lifts Markets, Canada Softens Tariffs, Trump Eyes $2B For DC could be updated as new developments unfold.
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