Federal Reserve Chair Signals Continued Interest Rate Hikes to Tackle Lingering Inflation
In a speech at the Jackson Hole symposium, Federal Reserve Chairman Jerome Powell acknowledged a slight decrease in inflation but emphasized that it still remains above the Fed's 2% target. He stated that the central bank is ready to raise interest rates further to combat inflation and intends to maintain a restrictive policy until they are confident that inflation is moving towards their goal. Powell also highlighted factors like the global impact of Russia's Ukraine invasion, volatile food and energy prices, and the need for further tightening in the housing sector. Overall, his message suggested that interest rates could rise further in the near future as the Fed carefully monitors economic data and strives to achieve its inflation objectives.
President Biden "Disappointed" by Xi Jinping's Absence at G20 Summit in India
US President Joe Biden expressed his disappointment at Chinese President Xi Jinping's decision to skip the upcoming G20 summit in India. While Biden expressed his desire to meet with Xi, he did not specify a date. China's Premier Li Qiang will lead the delegation in Xi's absence, as US-China relations remain tense despite recent diplomatic efforts. The news coincides with worsening China-India relations, including border disputes and territorial claims. The two leaders may have an opportunity to speak in November at the Asia Pacific Economic Cooperation meeting in San Francisco, following delays in dialogue efforts due to various disagreements.
Founder of FTX Cryptocurrency Exchange Faces Challenges Ahead of Trial
According to his attorney,
Sam Bankman-Fried, the founder of the defunct cryptocurrency exchange FTX, is
having trouble studying for his next fraud trial because of an allegedly
insufficient food supply in custody. Bankman-Fried's bail was recently revoked
due to worries about witness tampering after he entered a not guilty plea to
seven criminal charges in a fresh indictment. His attorney claimed that the
Metropolitan Detention Center in Brooklyn is depriving him of sufficient
nourishment and ADHD and depression medication. The US Justice Department's
Bureau of Prisons asserts that detainees have access to proper healthcare and
nourishment despite the difficulties. It is scheduled for October. He
vigorously contests the allegations, which center on the collapse of FTX in
2022.
Possible Strike at Australian LNG Plant Sparks Gas Price Increase
in Europe
A looming strike threat at an Australian LNG plant, the North West
Shelf facility, has driven wholesale gas prices up by about 10% in Europe. The
Offshore Alliance union's warning of potential strike action by September 2nd
if pay negotiations fail has sparked concerns of disruptions to LNG shipments
from Australia, a significant global supplier. The strike could impact not only
regional prices but also create a ripple effect globally. Two other
Chevron-operated facilities are also voting on strike action, with results
expected soon. Analysts are closely monitoring the situation, given that these
plants collectively make up 10% of the world's LNG supply.