As the probability of a rate hike rises following Fed Chair Warsh's Jackson Hole speech, disagreement with Trump becomes pronounced

Statements made by Federal Reserve Chair Kevin Warsh at the Jackson Hole meeting resonated widely across markets. Warsh emphasizing his discomfort with the overall inflation trend and pointing to the possibility of borrowing costs rising raised the probability of a rate hike regarding the September Fed decision, bringing expectations virtually neck-and-neck. While Harvard academic Rogoff stated that Warsh showed courage by resisting political pressures, the central bank came face to face ahead of the midterm elections with US President Donald Trump, who demanded lower borrowing costs.

On the other hand, according to analysis by Citrini Research, Fed Chair Warsh and Treasury Secretary Scott Bessent are pursuing a coordinated strategy to cover the $326 billion deficit on bank balance sheets and lower long-term bond yields. Amid these macroeconomic uncertainties, fixed mortgage and refinancing interest rates in the US recorded a slight increase entering the week.

Critical steps continue to be taken on the energy and corporate fronts as well. US President Trump stated that they will take control of Venezuela's 65 billion barrel oil reserve through a joint venture to be established in order to lower gasoline prices for American consumers. Meanwhile, BlackRock made a 96 percent reduction by lowering the Bitcoin ETF redemption minimum amount from $25 million to $1 million.

Finally, in the aviation sector, Airbus decided to shift its focus to European-made satellites following its agreement with Leonardo and Thales. As part of this strategic transformation, the company plans to sell its space unit in the US.

This content is for general information purposes and is not investment advice.