Trump says Powell is crushing housing market, renews call for steep rate cuts
Trump's latest salvo against Powell comes ahead of the Fed chair's Friday speech at the annual Jackson Hole central banking symposium, where investors will cleave to his every word for hints on his economic outlook and the likelihood of a coming reduction to short-term borrowing costs.The Fed's next policy meeting will be held on September 16-17.Investors and economists are betting the Fed will cut rates by a quarter of a percentage point next month with perhaps another reduction of similar size to come later in the year, far less than the several percentage points that Trump has called for.Trump's Treasury secretary, Scott Bessent, has promoted the idea of a half-point rate cut in September.The US central bank cut its policy rate half a percentage point last September, just before the presidential election, and trimmed it another half of a percentage point in the two months immediately following Trump's electoral victory, but has held it steady in the 4.25 percent -4.50 percent range for all of this year. Fed policymakers have worried that Trump's tariffs could reignite inflation and also felt the labor market was strong enough not to require a boost from lower borrowing costs.MIXED INFLATION PICTUREThe Consumer Price Index rose 0.2 percent in July, with the 12-month rate through July at 2.7percent, unchanged from June. Core CPI, which strips out the volatile food and energy components, increased 3.1percent year-over-year in July. Based in part on that data, economists estimated the core Personal Consumption Expenditures Price Index rose 0.3percent in July. That would raise the year-on-year increase to 3percent in July. The PCE is a key measure tracked by the Fed against its own 2 percent inflation target.And despite a moderate rise in overall consumer prices in July, producer and import prices jumped, a suggestion that higher consumer prices could be coming as sellers pass higher costs onto households. The inflation picture comes amid a picture of a possible cooling in the labor market, with declines in monthly job gains, although the unemployment rate, at 4.2 percent, remains low by historical standards.advertisementTrump's online attacks on the Fed and Powell more typically focus on the cost that higher interest rates mean for US government borrowing. High mortgage rates are a key pain point for potential homebuyers who are also facing high and rising home prices due to a dearth of housing supply.Mortgage rates can be loosely tied to the Fed's overnight benchmark rate but more closely track the yield on the 10-year Treasury note, which typically rises and falls based on investors' expectations for economic growth and inflation. A Fed rate cut does not always mean lower long-term rates -- indeed after the Fed cut rates last September, mortgage rates which had been on the decline rose sharply.In recent weeks the most popular rate the 30-year fixed mortgage rate has drifted downward but at around 6.7percent most recently is still much higher than it had been before inflation took off after the pandemic shock and the Fed began its rate-hike campaign in 2022.- EndsTune InMust Watch
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First Post
8 minutes ago
- First Post
Why Ukraine may get to join the EU but not Nato right now
Ukraine's push for European Union membership is advancing despite Hungary's resistance, but Nato accession remains off the table. Instead, Western leaders are exploring 'Article 5-style' security guarantees to protect Kyiv without triggering a direct clash with Russia European Parliament President Roberta Metsola holds an EU flag with Ukrainian President Volodymyr Zelenskyy at the European Parliament during an address in Brussels, Belgium, February 9, 2023. File Image/European Union via Reuters While Ukraine's path toward joining the European Union (EU) is slowly advancing, albeit with major obstacles, its entry into Nato remains blocked. Instead, Western leaders are exploring 'Article 5-style' security guarantees that might shield Ukraine from future Russian aggression without granting it formal membership in the transatlantic alliance. On Monday, United States President Donald Trump made a direct appeal to Hungarian Prime Minister Viktor Orbán after lengthy discussions with Ukrainian President Volodymyr Zelenskyy and a group of European leaders in Washington. STORY CONTINUES BELOW THIS AD The talks, held at the White House, centred on finding a unified strategy to push forward both peace negotiations with Russia and Ukraine's integration with Europe. Individuals familiar with the matter told Bloomberg that Trump was urged by European counterparts to use his personal influence over Orbán, a figure often at odds with the EU, to convince him to drop his opposition to Ukraine's EU membership talks. Hungary has been one of the most significant obstacles to Kyiv's European aspirations, having blocked the start of formal accession negotiations despite overwhelming support from other EU states. Orbán, who has built a reputation as one of the EU's most defiant leaders, responded by doubling down on his objections. He wrote on Facebook: 'Ukraine's membership in the European Union does not provide any security guarantees. Therefore linking membership with security guarantees is unnecessary and dangerous.' The Hungarian leader has frequently aligned himself with Russia on sanctions and aid issues, providing Moscow with diplomatic cover inside the EU. The Trump-Orbán call came only days after Trump's own meeting with Russian President Vladimir Putin in Alaska. Trump suggested he wanted to facilitate a direct summit between Putin and Zelenskyy, followed by a trilateral meeting that he himself would attend. No location or timetable for such an encounter has been set, though Hungary has expressed willingness to host. STORY CONTINUES BELOW THIS AD How Ukraine may join EU Ukraine's pursuit of EU membership began in the immediate aftermath of the invasion. On February 28, 2022, just four days after Russian forces crossed its borders, Zelenskyy signed the formal application. The urgency reflected Kyiv's desire to cement its place in the European family and to seek long-term protection against Moscow's ambitions. Eight EU member states quickly backed a fast-track procedure, though European Commission President Ursula von der Leyen made clear that the accession process would still take time. Within weeks, the EU institutions moved ahead. On March 10, 2022, the Council of the European Union requested the Commission's opinion on the application. A legislative questionnaire was handed to Ukraine on April 8, with responses submitted on May 9. On June 17, 2022, the Commission recommended granting Ukraine candidate status, and six days later, the European Parliament overwhelmingly supported the move. On June 23, 2022, the European Council formally declared Ukraine a candidate for membership. The decision placed Kyiv among nine active candidate states, alongside Albania, Bosnia and Herzegovina, Georgia, Moldova, Montenegro, North Macedonia, Serbia, and Turkey. Negotiations began in earnest on June 25, 2024, when the Council opened accession talks with both Ukraine and Moldova. STORY CONTINUES BELOW THIS AD Ukrainian President Volodymyr Zelenskyy speaks with French President Emmanuel Macron, German Chancellor Friedrich Merz, Britain's Prime Minister Keir Starmer, European Commission's President Ursula von der Leyen, Italian Prime Minister Georgia Meloni, Finland's President Alexander Stubb and NATO's Secretary General Mark Rutte, at the White House Library, in Washington, DC, US, August 18, 2025. Image/Ukrainian Presidential Press Service The step was hailed as another milestone in Ukraine's reorientation toward Western institutions, comparable to the integration of Estonia, Latvia, and Lithuania two decades earlier in 2004. However, progress has not been straightforward. In June this year, Hungary blocked the official opening of talks, citing fears of 'integrating war' into the EU. German Chancellor Friedrich Merz has also expressed doubts that Ukraine could complete the process by 2034, underscoring the long road ahead. Reforms inside Ukraine have also posed challenges. In July, parliament passed a law undermining the independence of anti-corruption institutions, a critical demand of Brussels. The European Commission quickly warned of consequences. Hours later, Zelenskyy annulled the decision and restored the independence of the agencies, declaring that the measure 'guarantees the absence of any kind of outside influence (or) interference.' Despite these hurdles, Ukraine remains firmly on the EU track. Accession, if completed, would place another former Soviet republic inside the bloc. Why Nato remains out of Ukraine's reach In contrast to its EU bid, Ukraine's chances of joining Nato remain slim for now. At the White House meeting on Monday, Nato Secretary General Mark Rutte made clear that the alliance was not discussing membership but rather a separate framework of commitments. 'The situation is this – that the US and some other countries have said that they are against Nato membership for Ukraine. The official Nato position … is that there is an irreversible path for Ukraine into Nato,' he explained. STORY CONTINUES BELOW THIS AD 'But what we are discussing here is not Nato membership, what we are discussing here is Article 5 type of security guarantees for Ukraine and what exactly they will entail will now be more specifically discussed.' The remarks reflect a long-standing dilemma. Article 5 of Nato's founding treaty, signed in 1949, binds members to treat an attack on one as an attack on all. It has only been formally invoked once, after the September 11 attacks in 2001. While the principle of collective defence is at the core of Nato's deterrence, it also raises the risk of direct confrontation with Russia, a nuclear power, should Ukraine become a member. Therefore, the focus has shifted toward designing alternative security guarantees. What 'Article 5-like' protections could mean for Ukraine Western leaders have increasingly referred to 'Article 5-style' or 'Article 5-like' protections for Ukraine. The phrase suggests a collective defence mechanism modelled on Nato's clause but without formally making Kyiv a member. White House special envoy Steve Witkoff described the concept in an interview with CNN on August 17, calling it a 'game-changing' assurance. He noted that the idea had been discussed at the Alaska summit between Trump and Putin, and claimed that Moscow would not object to such a framework as part of a broader peace deal. STORY CONTINUES BELOW THIS AD Unlike Nato's integrated military command, this arrangement would be a bespoke pact among willing nations, defining the obligations in the event of a renewed Russian offensive. The text of such guarantees would be crucial: who would commit troops or resources, under what circumstances, and with what speed. Without clear provisions, critics fear the agreement could lack credibility. Scepticism is widespread, particularly in Ukraine, which still recalls the 1994 Budapest Memorandum. Under that agreement, Ukraine gave up its inherited Soviet nuclear arsenal in exchange for assurances of territorial integrity from Russia, the United States, and the United Kingdom. Polish Foreign Minister Radoslaw Sikorski summed up the doubts bluntly, writing on X: 'On 22 April 2004 Vladimir Putin solemnly ratified the Treaty on the Russian-Ukrainian Border. Suffice to respect them and the war is over.' Still, European Commission President Ursula von der Leyen endorsed the concept, pointing out deterrence. 'As I have often said, Ukraine must become a steel porcupine, undigestible for potential invaders,' she declared. STORY CONTINUES BELOW THIS AD Nato currently has 32 members, with The US and other major Nato states believe extending Article 5 to Kyiv now would effectively mean joining Ukraine's war, something they are unwilling to do. Such special security guarantees for Ukraine raise a couple of questions: If guarantees are strong enough to deter Russia, why would Moscow accept them? Yet if they are watered down to secure Russian agreement, will they deter anyone at all? With inputs from agencies
Indian Express
8 minutes ago
- Indian Express
NATO defense chiefs hold a virtual meeting on security guarantees for Ukraine
NATO defense chiefs were due to hold a virtual meeting Wednesday, a senior alliance official said, as countries pushing for an end to Russia's war on Ukraine devise possible future security guarantees for Kyiv that could help forge a peace agreement. Italian Admiral Giuseppe Cavo Dragone, chair of NATO's Military Committee, said that 32 defense chiefs from across the alliance would hold a video conference as a US-led diplomatic push seeks to end the fighting. US Gen. Alexus Grynkewich, NATO's supreme allied commander Europe, will take part in the talks, Dragone said on social platform X. US President Donald Trump met last Friday with Russian President Vladimir Putin in Alaska and on Monday hosted Ukrainian President Volodymyr Zelenskyy and prominent European leaders at the White House. Neither meeting delivered concrete progress. Trump is trying to steer Putin and Zelenskyy toward a settlement more than three years after Russia invaded its neighbor, but there are major obstacles. They include Ukraine's demands for Western-backed military assurances to ensure Russia won't mount another invasion in coming years. 'We need strong security guarantees to ensure a truly secure and lasting peace,' Zelenskyy said in a Telegram post Wednesday after Russian missile and drone strikes hit six regions of Ukraine overnight. Kyiv's European allies are looking to set up a force that could backstop any peace agreement, and a coalition of 30 countries, including European nations, Japan and Australia, have signed up to support the initiative. Military chiefs are figuring out how that security force might work. The role that the US might play in is unclear. Trump on Tuesday ruled out sending US troops to help defend Ukraine against Russia. Russia has repeatedly said that it would not accept NATO troops in Ukraine. Attacks on civilian areas in Sumy and Odesa overnight into Wednesday injured 15 people, including a family with three small children, Ukrainian authorities said. Russian strikes also targeted ports and fuel and energy infrastructure, officials said. Zelenskyy said the strikes 'only confirm the need for pressure on Moscow, the need to introduce new sanctions and tariffs until diplomacy works to its full potential.' Trump said Monday he has begun arrangements for a face-to-face meeting between Putin and Zelenskyy, although the Kremlin hasn't publicly confirmed such a possibility and no venue was suggested. French President Emmanuel Macron has said the summit could happen in Europe and proposed the Swiss city of Geneva. Switzerland has expressed its willingness to act as host. Putin's ability to travel abroad is limited, however, because he is wanted by the International Criminal Court in The Hague on a warrant dating back to March 2023 for alleged involvement in the abduction of Ukrainian children. More than 100 countries are ICC signatories and have a legal obligation to arrest the Russian leader on their soil. Switzerland intends to ask the ICC to exempt it from sanctions in order to allow Putin in for a summit, according to a senior official in The Hague with direct knowledge of the request. The official was not authorized to speak about the proceedings and spoke on condition of anonymity.
Time of India
8 minutes ago
- Time of India
Market Wrap: Sensex rises 213 points, Nifty tops 25,000 in 5-day winning run ahead of US Fed symposium
Indian benchmark indices Sensex and Nifty extended their winning streak to a fifth session Wednesday, lifted by IT shares, as investors looked ahead to the Federal Reserve's Jackson Hole symposium later this week. Tired of too many ads? Remove Ads Indian benchmark indices Sensex and Nifty extended their winning streak to a fifth session Wednesday, lifted by IT shares, as investors looked ahead to the US Federal Reserve's Jackson Hole symposium later this S&P BSE Sensex advanced 213.45 points, or 0.26%, to 81,857.84, while the NSE Nifty 50 gained 69.90 points, or 0.28%, closing above the 25,000 mark at 25,050.55 after trimming early losses.
