Summits
Jackson Hole 2025: Will the Fed signal a Sept rate cut?
Every year, an obscure valley in the state of Wyoming - Jackson Hole - captures the world’s attention when it plays unlikely host to an annual Economic Symposium, which includes some of the world’s leading economists and monetary policymakers. Given the mounting political pressure on Federal Reserve (The Fed) chair Jerome Powell, this year’s annual economic pow wow at Jackson Hole – which kicks off on Friday (U.S. time) – is expected to provide long-awaited clarity into the central bank’s thinking on more interest rate cuts and the implications for Americans' wallets. Much to the frustration of United States President Donald Trump, Powell has not succumbed to bullying and has kept rates on hold in light of recent inflation readings that reveal price pressures remain above the Fed’s target of 2%. Also worrying Powell and fellow members of the Fed’s board is the weakening state of the U.S labour market. Given that markets are pricing in a quarter to half a point cut for September – with some even expecting a bigger move - Powell’s guidance later this week can’t be understated. What’s also creating an interesting backdrop to Powell’s comments is the recent appointment of Trump-loyalist Stephen Miran to the central bank
World Bank commits to supporting Pacific development
The World Bank has emphasised its commitment to supporting economic resilience and development in the Pacific region, following a visit from the bank’s officials. Its managing director of operations Anna Bjerde visited Fiji, Papua New Guinea, and Australia. The World Bank also agreed in July to strengthen its procurement requirements to mandate that at least 30% of labour on international civil works contracts is local. “The World Bank Group is proud to support the people of the Pacific with solutions that address development challenges in the region, with jobs at the centre — giving young people the chance to shape their own future,” said Bjerde. Bjerde attended the Pacific Islands Forum Economic Ministers Meeting in Fiji, where the World Bank said she stressed the importance of smaller Pacific island nations’ connections to international financial institutions. The World Bank’s Correspondent Banking Relationships Project, which launched last year, allows eight Pacific nations to offer services in foreign currencies across borders. “How can Pacific countries maintain their economic links? We recommend removing barriers to trade and investment, especially in services, since many of your countries have large, tradable s
Carney meets Trump to forge Canada's US economic reset
Despite the seismic gulf between the United States and Canada on key issues, the Oval Office meeting between the country’s two leaders was more like the traditional White House peacock dance than the high stakes encounter the market expected. However, while U.S. President Donald Trump was hell bent on framing the meeting as a “very friendly” meeting with America’s northern neighbour, Canada’s newly appointed Prime Minister Mark Carney had a more pressing objective. Given that Carney had come to power on the promise of creating a new bilateral economic and security relationship with its southern neighbour, his visit to Trump was all about reminding Washington that it was rebalancing its relationship with Canada. What has galvanised Canadians' desire to diversify an economy heavily dependent on exports to the U.S. was repeated throw away remarks by the U.S. president that Canada should become the 51st state of America. No visit to the U.S. would have been complete without Carney delivering his blunt salvo to Trump that “Canada is not for sale; it won’t be for sale – ever.” In typical Trump-like retort the U.S. President responded by saying “Never say never, never say never”, and that it would be “a wonderful marriage