Federal Reserve Chair Kevin Warsh told the audience at the annual Jackson Hole Economic Policy Symposium that the Fed will need to act if inflation remains above its 2% goal. He said recent price data showed a modest improvement but did not indicate a meaningful change. Inflation rose 3.4% in the year to July, above the Fed’s target, and a closely watched measure ran at 3.7%. Warsh emphasized that his remarks should not be taken as forward guidance and argued that frequent public signals about future interest rates have become counterproductive. During the speech, he noted that prices are rising more than 2% annually, so the Fed’s primary focus should be on bringing inflation back to target. He added that if underlying inflation does not move to the desired level, the central bank must be prepared to adjust policy. Warsh’s comments came as investors increased expectations of a September rate hike, according to CME data. Capital Economics analysts described the message as clearer and more hawkish than previous communications, saying the door to an earlier move was now open if economic growth stays strong and core personal consumption expenditures price growth remains elevated. Higher oil prices have pushed borrowing costs higher for the U.S. government and corporations, raising interest payments that have helped the national debt exceed $40 trillion. Debt has been increasing by about $90,000 per second, or $7.8 billion per day, according to the Congressional Joint Economic Committee. The next Federal Open Market Committee decision will be taken on 15‑16 September. Market participants will monitor any change in the Fed’s stance, especially as President Donald Trump’s remarks on interest rates and the approaching mid‑term elections add political context to the monetary debate.
Macro signals, central banks, earnings, and the deals moving capital today.
Donald Trump announced a deal with Venezuela that would give the United States control over more than 65 billion barrels of its proven oil reserves. The agreement is expected to increase US oil reserves and could affect domestic gasoline prices.
Venezuela's interim President Delcy Rodríguez said the arrangement would help revive the country's economy, raise crude output to 1.5 million barrels per day and remain in effect for 25 years. The deal calls for development of 17 strategic fields with a total proven potential of 65 billion barrels and requires investment of more than $100 billion, of which more than $209 billion would be returned in taxes.
The United States will retain 55 percent control of a joint venture with an experienced private operator, which will receive a 100‑year concession to operate the fields, according to a US official. Secretary of State Marco Rubio said the agreement would bring nearly $100 billion in private investment, support high‑paying jobs and aid economic reconstruction. Trump stated that the deal was reached through a partnership with private business and that it imposes no cost on American taxpayers. Henrique Capriles, a moderate opposition lawmaker, questioned the agreement's transparency and called for a constitutional explanation of its legal basis. Energy consultant David Goldwyn noted there is no precedent for the US government leasing Venezuelan oil fields and warned that political uncertainty, a weak power grid and limited export capacity could hinder investment. Lawyer Alexander Kuiper said the arrangement could be significant but emphasized that it remains unclear whether the reserves will be developed and how long any impact on oil prices would take.
The legal status of the agreement and its ability to deliver the promised investment and production gains remain unresolved.
U.S. Treasury Secretary Scott Bessent said that disorderly movements in the yen could trigger rapid reductions of market positions that risk destabilizing global markets and raising borrowing costs for households and businesses. He made the remarks in a letter dated August 27, which he posted on his X account in response to a request from Democratic Senator Elizabeth Warren for details of the United States’ joint currency intervention with Japan in July.
The United States and Japan conducted a rare joint yen‑buying intervention on July 31 to counter a steep decline in the yen and Japanese government bonds. The yen fell to a 40‑year low near 164 per dollar in July before recovering after the intervention, then weakened again toward 160. It briefly slipped below 160 on Friday, a level that market participants view as a trigger for further intervention, after comments from Federal Reserve Chair Kevin Warsh revived expectations of a near‑term U.S. rate hike.
In the letter, Bessent explained that the Treasury used the Exchange Stabilization Fund to exchange foreign‑currency assets for yen during the July 31 operation. He said the same principle was applied in Argentina, where the Fund was used to address short‑term illiquidity and prevent a broader regional crisis. Bessent added that the best‑managed crisis is one that never occurs, defending the decision to cooperate with Tokyo.
The yen remains near 160 against the dollar, and policymakers continue to monitor currency volatility.
Treasury Secretary Scott Bessent, a billionaire hedge fund manager, has taken charge of President Donald Trump’s effort to pressure Iran through economic measures after a six‑mo...
Treasury Secretary Scott Bessent, a billionaire hedge fund manager, has taken charge of President Donald Trump’s effort to pressure Iran through economic measures after a six‑month bombing campaign failed, while the national debt exceeds $40 trillion and long‑dated Treasury yields have risen to levels not seen in two decades.
Bessent was confirmed by the Senate in August 2025 with a 68‑to‑29 vote, becoming the first openly gay Treasury secretary in U.S. history. He previously worked at George Soros’s fund, helped execute the 1992 bet against the pound, and has shifted from Democratic donor to a supporter of Trump’s economic nationalism.
The Treasury’s quarterly buyback program for 10‑ to 30‑year bonds was doubled last week, with each operation now targeting at least $4 billion to support liquidity in a thin August market. Yields on long‑dated bonds climbed to their highest point in nearly 20 years, raising the cost of servicing the $40 trillion debt. Bessent briefly intervened in the Japanese yen market, the first such action in 15 years, to support currency stability. Analysts say the buybacks provide only a short‑term fix and may rely on the Treasury General Account, leaving the underlying funding gap unaddressed.
On Iran, Bessent announced “Operation Economic Outcast,” a plan to isolate Tehran from the global financial system, but no secondary sanctions have been imposed on major trading partners. Implementing full secondary sanctions would require targeting Chinese state‑owned banks, a step that could trigger a trade conflict between the United States and China.
Trump has announced 50% tariffs on $20 billion of Canadian goods, and Canada has retaliated with matching tariffs on $20 billion of U.S. products, including steel, dairy, appliances and farm equipment. Bessent previously described tariffs as a useful tool for foreign policy and said he has evolved on the issue, supporting the president’s actions.
Critics, including former political strategist Steve Schmidt, have labeled Bessent incompetent and dishonest, while others argue his policies have failed to curb rising debt costs or to produce tangible results. Financial analysts describe the bond buyback as a “band‑aid on a bullet hole,” suggesting the measures are insufficient to satisfy market forces. The coming months will reveal whether Bessent can balance debt reduction, market stability and foreign economic pressure, or whether his role will further erode confidence in the Treasury.
Venezuelan interim President Delcy Rodríguez said on August 29 that a U.S. energy agreement with Venezuela would be valid for 25 years and aim to raise crude output to 1.5 million barrels per day. Venezuela holds the world’s largest proven oil reserves but has produced about 1.25 million bpd due to underinvestment, mismanagement and sanctions. The deal proposes to develop 17 strategic oilfields and eight new greenfield blocks as part of a broader energy expansion. Rodríguez said the agreement would generate roughly $209 billion in revenue at a $65 per barrel price, with about $19 per barrel flowing to Venezuela, and that the country would retain ownership of its natural resources while using capital and technology from partners. President Donald Trump announced on Friday that the United States would take partial control of Venezuela’s oil reserves to revive its energy sector and lower U.S. fuel prices, though details were not disclosed. Two sources close to the talks said Chevron was expected to finalize discussions to transition its joint ventures into the new framework. Pro‑government groups staged a demonstration in Caracas on Saturday opposing the U.S. presence. The agreement is slated to be signed next week, and the ultimate impact on Venezuela’s oil output and the U.S. energy market remains to be seen.
Canadians have begun boycotting United States goods after the United States imposed 50% tariffs on about $20 billion of Canadian products.
A July Angus Reid survey found that 40 % of grocery shoppers regularly check product origins and many avoid US‑made items.
William McDonald, a 38‑year‑old diesel mechanic from Thunder Bay, Ontario, said he switched to Canadian beer and now spends roughly C$1,000 more per year, while noting that groceries are about C$50 higher each week.
Denise, a resident of Winnipeg, Manitoba, said the boycott reflects widespread animosity to the United States across the political spectrum, and she avoids US airlines, hotels and airports.
Elizabeth Lorenz, a retired teacher from Nanaimo, British Columbia, said she reads product labels and has stopped buying US‑made items such as Annie’s Pasta, and has started growing her own vegetables.
Jane, a 54‑year‑old teacher from Camlachie, Ontario, said she has stopped traveling to the United States and now purchases only Canadian groceries and alcohol, using apps to locate Canadian alternatives.
James Buchan, an IT worker from Halifax, Nova Scotia, said he sold his Apple products and replaced them with Canadian or European alternatives, and also switched his email, mapping and language‑learning apps to non‑US services.
Kurt, a retired engineer from Calgary, Alberta, said his whiskey‑tasting group stopped buying American whiskies after the first round of tariffs and has discovered Canadian equivalents.
Mark Carney, the Canadian prime minister, said the government will match the tariffs “dollar for dollar” following the collapse of trade talks, and Donald Trump ordered the federal government to rename Lake Ontario to Lake America.
Some participants said the boycott has helped unify Canadians around a common cause, while others expressed hope that the experience will make Canada stronger.
President Donald Trump signed an executive order on Thursday to rename Lake Ontario as Lake America, citing trade tensions with Canada. The lake, the easternmost of the Great Lakes, borders both the United States and Canada. Captains on both sides of the border said the change has little impact on their operations. Howie Colt, captain and founder of Gone Sailing Adventures in Toronto, said it is a nonissue except for the humor it generates. Brent Bochek, a fishing guide in St. Catharines, Ontario, said he will continue to refer to the body of water as Lake Ontario. Joe Kyle, captain of Onacona Charters near Rochester, New York, similarly said he will call it Lake Ontario until he dies. Tourism from Canada into the United States fell 25 percent in 2025 after Trump imposed tariffs and suggested Canada could become the 51st state, according to Canadian government data. Bookings from Canadians to the United States remain 39 percent below 2024 levels, though July volumes were up 5.7 percent from the previous year, said Amra Durakovic, head of communications for Flight Centre Travel Group Canada. At Lake Ontario Press in Rochester, owner Matt Saxon reported several hundred inquiries for a weekend T‑shirt printing event featuring Lake Ontario designs, with no requests for Lake America designs. Dan Farris, co‑owner of Toronto Harbour Tours, described the name change as a sad reflection of deteriorating bilateral relations, but said guides treat it as a joke and plan to incorporate it into tour narratives. Nick Garbowski, captain and owner of Rochester Yacht Charters, said he has received feedback from dock employees but will not alter advertising or terminology unless the new name gains traction. Dan DeGeorge, captain of Double D Sportfishing in Rochester, launched a red, white and blue advertisement promoting fishing on Lake America, though he doubts the name will endure. Overall, the executive order has not triggered mass cancellations, and most local sailors expect the original name to remain dominant.
OpenAI announced it will end providing its AI models to Cursor, a coding tool now owned by SpaceX, marking a further strain in the dispute between OpenAI CEO Sam Altman and Elon Musk.
The partnership began when SpaceX’s acquisition of Anysphere, the startup behind Cursor, was completed earlier this month after a $60 billion all‑stock deal. OpenAI said it cannot be confident SpaceX will use its technology in accordance with its terms of service, based on previous contract breaches.
OpenAI set a shutdown date of November 12, 2026, citing a change‑of‑control clause in the agreement. In a blog post, the company noted that SpaceX’s purchase of X, formerly Twitter, also violated its contract terms. Musk responded on X, saying he “couldn’t care less” and accusing Altman and OpenAI President Greg Brockman of being untrustworthy and of “stealing” an open‑source nonprofit.
Cursor co‑founder Michael Truell said the company is discussing the issue with OpenAI to resolve it. Shortly after OpenAI’s announcement, Anthropic said it will increase compute resources to support its Claude models in Cursor, according to co‑founder Tom Brown. OpenAI’s statement referenced a breach of contract by SpaceX after Musk acquired the platform.
The termination follows a long‑running legal battle in which Musk sued OpenAI for allegedly violating the organization’s nonprofit mission; a federal jury earlier dismissed the case for being filed too late. The situation remains unresolved as the November 12 deadline approaches.
General Motors plans to invest C$1.1 billion in Canadian auto factories under a tentative agreement with the Unifor union, subject to worker votes, to address U.S. tariff pressure on the sector. Canada's auto sector has been strained by a 25 % U.S. tariff on vehicles, and President Donald Trump has pledged to raise the rate to 50 % on Jan 1 2027. Trade talks between the United States and Canada stalled last week over issues including duties on medium‑ and heavy‑duty trucks. The tentative agreement would allocate C$144 million to add a new heavy‑duty GMC Sierra pickup assembly line at the Oshawa plant, and C$215 million to install a next‑generation transmission at a St. Catherine factory beginning in late 2029. It also includes a C$691 million commitment to support new V8 engine production in Ontario, a figure announced in April. GM has pledged not to sell or close its CAMI assembly plant in Ingersoll while evaluating alternative uses, and the plant would receive priority for defense contracts with the Canadian Armed Forces if a deal is secured. The agreement covers about 4,600 Unifor members in Ontario and is subject to votes scheduled for Saturday and Sunday. Both Unifor and GM’s Canadian division declined to comment during the voting period. The investment comes amid ongoing uncertainty about U.S. trade policy, as negotiators have indicated they may raise tariffs on Canadian vehicles and parts starting in 2027, leaving the long‑term stability of Canadian auto manufacturing unresolved.
Dolly Parton died on August 25 at age 80. Her song “9 to 5” is frequently referenced in discussions of workplace equity and personal finance.
Context: The song was written after Parton learned about the 9to5 organization, a Boston‑based group founded in 1973 by clerical workers advocating fair pay for women. Parton’s co‑star Jane Fonda introduced her to the organization’s mission.
During the author’s first semester at the University of Maryland, a four‑year scholarship provided tuition, room, books and paid internships at the Baltimore Sun and its sister paper, the Evening Sun. The agreement promised a journalism position after three additional summer internships if the author performed well.
The author’s grandmother emphasized that graduation would enable financial support for a disabled brother who suffered from epilepsy. The author pursued a journalism career to meet those obligations.
After completing the internships, the author obtained a full‑time position at the Sun. The author reported being paid less than colleagues with comparable experience and observed that assignments were often given to white male interns. An editor reportedly denied the author opportunities and reassigned a story after the white male intern declined.
The author noted that diversity, equity and inclusion programs have been described by critics as granting unfair advantage, while the author characterized them as corrective measures. Such initiatives aim to address historic underrepresentation in the newsroom.
Parton used her earnings to fund educational programs, including the Imagination Library, which provides free books to children. She retained publishing rights to her songs and described them as assets that would support her in later life.
The author says Parton’s lyrics continue to motivate workers confronting economic and workplace challenges. Parton’s death was announced on August 25, and the 9to5 organization issued a statement expressing condolences and noting her role as an advocate for fair labor practices.