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As of September 11, 2025, Federal Reserve Chair Jerome Powell has indicated a likely interest rate cut at the Fed's September meeting due to a slowing US economy and rising unemployment risks. Despite inflationary pressures from tariffs, Powell emphasized cautious, data-driven decisions amid political pressure from President Trump, who has escalated attacks on Fed independence by targeting Governor Lisa Cook.
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The IMF plans to merge its climate, development, inclusion, and gender units into its macro-financial division, signaling a shift away from its previous focus on climate change and gender issues. The move follows criticism from US critics and internal debates about the organization's priorities. The change will be formalized at October's fall meetings.
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Bank of England officials warn of potential recession risks as inflation remains high and growth slows. Meanwhile, US policymakers expect further rate cuts to support the economy, citing trade tensions and inflation. Asian economies face different challenges, with deflationary pressures and subdued inflation. The global outlook remains uncertain.
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Recent UK economic data shows sluggish growth, with a 0.1% rise in August and downward revisions for July. Public finances are under pressure, with a widening deficit and high borrowing, complicating the upcoming budget. Political and global uncertainties add to the economic outlook's fragility.
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Former President Trump is exploring a potential replacement for Fed Chair Jerome Powell, amid discussions of sweeping policy ideas including 50-year mortgages, direct healthcare payments, and dividend payouts from tariffs. These proposals are at early stages and face legislative and legal hurdles as Trump’s influence on economic policy continues to evolve.
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Recent surveys indicate US consumer confidence has fallen to its lowest since April, driven by inflation, labor market concerns, and political uncertainty. Despite delayed official data, Americans report rising prices, especially in food and dining out, impacting spending and economic outlook. The Federal Reserve faces a delicate balancing act ahead of its rate decision.