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For months, the Federal Reserve chair, Jerome Powell<\/a>, has ignored demands from Donald Trump to cut interest rates and defied the US president\u2019s calls to resign, Callum Jones reports.<\/p>\n Federal Reserve chairman Jerome Powell attends the Federal Reserve Bank of Kansas City’s 2025 Jackson Hole economic symposium. Photograph: Jim Urquhart\/Reuters<\/p>\n On Friday, as Trump ramps up his extraordinary attack on the central bank\u2019s independence, Powell will set out where he thinks the world\u2019s largest economy is headed in a closely scrutinised speech at the Jackson Hole symposium in Wyoming.<\/p>\n As Trump\u2019s erratic trade strategy continues to enshroud the US economy in a fog of uncertainty, investors, economists and officials hope Powell will provide hints of the Fed\u2019s plans for the months ahead.<\/p>\n At five consecutive meetings, the Fed has left rates unchanged, despite the president\u2019s calls for rapid cuts. Before moving, most policymakers wanted more clarity on the economic impact of his policies, including sweeping tariffs on imports, and deportations.<\/p>\n Things might be about to change. At the Fed\u2019s next rate-setting meeting, in September, traders currently put the chances of a rate cut at 73.5%, according to CME\u2019s FedWatch tool.<\/p>\n It would be the first in nine months.<\/p>\n Read more:<\/p>\n Share<\/a>UK two-year gilt yields hit highest level in more than two months<\/p>\n Yields on two-year gilts have jumped to their highest level since 9 June, rising three basis points to around 3.999%, as markets priced in later rate cuts by the Bank of England.<\/p>\n Investors have been digesting data released earlier this week, showing that inflation in Britain rose to 3.8% in the 12 months to July<\/a>. That was up from June\u2019s 3.6% reading<\/a>, sitting above the central bank\u2019s 2% target for the 10th consecutive month.<\/p>\n Markets are no longer pricing in another rate cut this year, with expectations having been pushed back to spring 2026, with many investors pointing to a cut in April next year.<\/p>\n Share<\/a><\/p>\n Exclusive: Elon Musk\u2019s company, Tesla, should have its application to supply energy to UK homes<\/a> blocked on national security grounds, Ed Davey has told ministers.<\/p>\n The Liberal Democrat leader argued that giving the electric car manufacturer a foothold in the British energy market would be \u201ca gravely concerning move considering Elon Musk\u2019s repeated interference in UK politics\u201d, our political correspondent Eleni Courea reports.<\/p>\n Elon Musk, CEO of Tesla, is facing calls for his application to supply energy to UK homes blocked on national security grounds. Photograph: Kirsty Wigglesworth\/PA<\/p>\n Tesla has a clean energy arm and applied in July for a licence to supply power to British homes<\/a>.<\/p>\n If the licence is granted by the regulator, Ofgem, the US company could be competing with big UK domestic energy suppliers such as British Gas and Octopus as soon as next year.<\/p>\n In a letter to the energy secretary, Ed Miliband, Sir Ed cited comments by Musk on social media appearing to encourage violent riots in the UK last summer, and accused the Tesla CEO of \u201cpeddling misinformation to millions\u201d.<\/p>\n Read more:<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.13 EDT<\/p>\n Powell\u2019s speech could end up being \u201clegacy defining\u201d and, potentially, his last, according to some analysts, who expect the central bank may not be able to hold onto its leader much longer amid pressure from the Trump administration.<\/p>\n But some are also worried that his comments could end shattering expectations for a September rate cut.<\/p>\n Kevin Ford, FX & Macro Strategist at foreign exchange platform Convera says the conviction for a September cut is based on some shaky foundations, with the market odds of a September Fed cut having fallen from 95% to around 70% in two weeks<\/p>\n Ford says:<\/p>\n The problem is, the market\u2019s conviction is built on some shaky foundations, and Powell\u2019s speech could be the thunderbolt that shatters the calm.<\/p>\n The current atmosphere feels eerily similar to last year, with markets fixated on a September cut. But the underlying data is starkly different. In 2024, the Fed was facing a different beast: a rising unemployment rate and the specter of recession.<\/p>\n This year, after cutting 100 basis points, core inflation is still stubborn and the labor market, while showing some signs of cooling, isn\u2019t screaming for emergency intervention. The economic context is simply not the same, yet the market is pricing in a cut with near-certainty.<\/p>\n This disconnect is what makes Powell\u2019s speech a high-stakes event.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.01 EDT<\/p>\n FTSE 100 dips on Friday open after third consecutive record close<\/p>\n The FTSE 100 dropped 0.2% at the start of trading, following its third consecutive record high on Thursday afternoon.<\/p>\n It appeared to reflect a mix of profit taking, as well as investors taking a bit of a breather ahead of Powell\u2019s speech.<\/p>\n There was a mix of stocks at the bottom of the index, with property sales platform Rightmove, software firm Sage Group and wealth manager St James\u2019s Place all down 1% at the market open.<\/p>\n