From Wall Street’s surge on Powell’s rate-cut hints to Canada’s softer line on US tariffs and Donald Trump’s push for $2 billion to overhaul Washington, it’s been a busy day across finance and politics.
Here are the biggest news stories that made headlines today.
Powell signals possible rate cuts as Wall Street soars
US Federal Reserve Chair Jerome Powell struck a cautiously dovish tone in his Jackson Hole Symposium speech, acknowledging that risks to growth and inflation have shifted in ways that may justify an interest rate cut in the coming months.
While he avoided firm commitments, Powell stressed that upcoming jobs and inflation data will be decisive for the Fed’s September 16-17 meeting.
Markets took the remarks as a green light to raise bets on an imminent cut.
Traders now see nearly a 90% chance of easing next month, up from about 75% before Powell spoke.
Wall Street responded sharply: the Dow Jones surged over 900 points to hit an all-time high, the S&P 500 recorded its biggest one-day advance since May, and the Nasdaq rallied almost 2%.
The tone from Jackson Hole underscored both the opportunities and the uncertainty facing monetary policymakers as they weigh how aggressively to act.
Canada moves to ease tensions with Washington
North of the border, Canada is reportedly set to announce the removal of several retaliatory tariffs on US goods in a bid to restart stalled trade talks.
Tariffs on sensitive sectors such as autos, steel, and aluminium will remain for now, but the step marks a notable softening of tone from Ottawa.
Prime Minister Mark Carney, who swept to power in April on a promise to stand firm against Donald Trump’s tariffs, has gradually shifted toward a more pragmatic approach.
Carney is scheduled to address the press later today, and markets are already reacting.
The Canadian dollar extended gains following reports of the move, rising 0.5% against the US dollar.
While the two sides remain far apart on a comprehensive economic and security framework, the tariff rollback is being cast as a goodwill gesture designed to unblock negotiations.
Trump seeks $2 billion for Washington makeover
In Washington itself, President Trump unveiled plans to request $2 billion from Congress to restore the capital’s parks, medians, and infrastructure, while also pledging tougher measures to fight crime.
Trump told reporters he expects Congress to approve the funds, saying the money would be spent “wisely” with Clark Construction on projects across the city.
The move comes after Trump earlier used emergency powers to assert control over Washington’s police force and deploy the National Guard, despite official data showing violent crime at a three-decade low.
Critics view the latest funding request as part of Trump’s broader bid to exert authority over the Democrat-run city.
The president, however, insisted the measures are needed to ensure visitors “don’t go home in a body bag.”
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