Federal Reserve cuts US interest rates for first time since December

The US Federal Reserve cut interest rates on Wednesday, its first rate cut since December, as the central bank moved to stabilize a wobbling labor market even as Donald Trump’s tariffs continue to push up prices.Rates are now at a range of 4% to 4.25% – the lowest since November 2022. But the decision is unlikely to satisfy Trump, who has lambasted the Fed for acting “too late” and called for a far bigger cut.“Job gains have slowed and the downside risks to unemployment have risen,” Fed chair Jerome Powell said during a closely watched press conference

Nationwide chair first major British lender boss to publicly engage with Reform UK

Nationwide building society has defended its chair, Kevin Parry, after he became the first boss of a major British lender to publicly engage with Nigel Farage’s Reform UK party.It emerged on Wednesday that Parry, who has been chair of the member-owned building society since 2016, attended a breakfast event earlier this week meant to help companies understand Reform’s approach to business.The breakfast event was hosted by Sanctuary Counsel, a consultancy focused on “building, enhancing and protecting” the reputation of clients, with Parry seated next to Reform’s deputy leader, Richard Tice.It makes Parry the first senior boss from a UK bank or lender to be publicly seen with the party, which has outlined controversial policies including the mass deportation of asylum seekers, ripping up green energy contracts and stripping the City watchdog of its power to regulate the banking industry.The building society, which is owned by its 17 million members, defended Parry’s attendance – which was first reported by the Financial Times – saying it was part of “routine” engagement with parties across the political spectrum

Labor statistics chief fired by Trump sounds alarm over White House’s ‘dangerous’ interference

The former chief US economics data statistics who Donald Trump fired last month called her sudden removal “dangerous” and said Americans should be concerned about the independence of key economic institutions.“Markets have to trust the data are not manipulated,” said Erika McEntarfer, the former head of the Bureau Labor of Statistics, in her first remarks since her firing. “Firing your chief statisticians for releasing data you do not like, it has serious economic consequences.”The bureau collects and releases key economic data on the labor market and prices. In August, the bureau revised down initial figures that showed steady job growth in May and June by 258,000

Premium bonds might beat the bond market bullies | Letter

I read the article by Larry Elliott with interest and thought I could suggest one small act of rebellion that is easily in the chancellor’s hands and could raise substantial sums of money (Let France be a warning, Rachel Reeves: stand up to the bond market vigilantes, or they’ll come for Britain next, 11 September).At the moment, interest on the vast majority of government borrowing is paid to banks, pension funds and other lenders, a significant proportion of which are based overseas. Interest paid on those borrowings varies, but can exceed 5%.While we are largely in the hands of these “bond market bullies”, we have our own bond market that is available to tap into. At the moment about £130bn is held in premium bonds, which pay out an equivalent interest rate of 3

Labor’s Measuring What Matters is a worthy goal – but one that has utterly failed to live up to its promise | Greg Jericho

This week, the Bureau of Statistics realised its latest series of Measuring What Matters in an attempt to assess things beyond the mere economics. It comes off the back of the bureau’s first attempt to measure productivity in the non-market sector. Both raise questions of what we value and also whether our focus is where it should be.In 2020 the then shadow treasurer, Jim Chalmers, announced an ALP government would develop a wellbeing framework that would seek to “measure what matters”. It was a worthy goal mocked by the then treasurer, Josh Frydenberg

UK overall inflation remains at 3.8% in August, but food price growth climbs for fifth month in a row - as it happened

Our main story today:UK inflation held steady in August, official figures show, maintaining pressure on households as the Bank of England prepares to keep borrowing costs at elevated levels.Figures from the Office for National Statistics (ONS) show the annual rate of inflation as measured by the consumer prices index remained at 3.8% last month, the same level as July and matching the forecasts of City economists.Financial markets are widely predicting that Bank policymakers will keep interest rates on hold at 4% on Thursday amid signs of sustained inflationary pressures at almost twice its official 2% target rate.The Bank of Canada cut interest rates by a quarter point today, and the US Federal Reserve is expected to make a similar move tonight