Happy Thursday and welcome to your global recap of business and political news from overnight.
First up, the Federal Reserve held interest rates steady, as widely expected, and left the door open for a rate cut in September.
The Fed kept the benchmark rate in its target range of 4.25% to 4.5%, where it has been since December.
Two members of the board voted against the plan, saying they preferred to cut, which signalled broader support for lower rates, the BBC noted.
Policymakers had indicated that they expected to lower borrowing costs this year but had held off longer than expected because of US President Donald Trump’s trade tariffs and other new policies, including tax cuts.
Bloomberg Economics’ Anna Wong said the two Fed governors dissenting for the first time since 1993 was quite notable.
“Perhaps as a compromise, the policy statement was more dovish than we expected, flagging that growth moderated in the first half of the year. We see that as potentially laying the ground to cut rates soon.
“Bloomberg Economics thinks most FOMC members won’t feel confident enough that inflation is moving in the right direction until late in the year, cutting only at the December meeting, though the dovish statement flags rising odds of a cut in September.”
Israeli Prime Minister Benjamin Netanyahu.
In the Middle East, Israeli Foreign Minister Israel Katz joined others in condemnation over growing international announcements of the recognition of a Palestinian state.
He labelled the move “encouragement” for Hamas to “harden its stance” during ceasefire negotiations, Al Jazeera reported.
“We are making tremendous efforts to bring about the release of the hostages while exerting heavy pressure on Hamas in Gaza,” Katz said.
US special envoy Steve Witkoff is expected to travel to Israel to meet with Prime Minister Benjamin Netanyahu and senior officials. Ceasefire negotiations remain in limbo after Israel and Hamas withdrew their negotiating teams.
Trump promised not to extend again the August 1 deadline for his reciprocal tariffs on dozens of countries, CNBC reported.
“THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!” Trump wrote.
Trump also said the US would introduce a 25% tariff on goods from India, and a “penalty” for buying military gear and energy from Russia.
US and Chinese negotiators agreed in principle to push back the deadline for escalating tariffs, although any extension would need Trump’s approval, the Guardian reported.
Officials had failed to find a resolution but had agreed to extend a pause due to end on August 12.
Beijing’s trade negotiator Li Chenggang said the extension would allow for further talks, without specifying when and for how long. US trade representative Jamieson Greer noted Trump would have the “final call” on any extension.
Tsunami alerts remain in place for Chile, Ecuador, Peru, Colombia, Papua New Guinea, Solomon Islands and Vanuatu, following the massive 8.8 magnitude earthquake off Russia’s eastern coast, the Guardian reported.
Most earlier warnings were lifted or downgraded in most other parts of the world, including Japan, Russia, and the Philippines.
Waves hit Ecuador’s Galápagos Islands. Residents and tourists on Chile’s Easter Island evacuated to higher ground, while evacuations began along the mainland’s Pacific coast.
In China, days of torrential rain killed at least 30 people on the northern outskirts of Beijing, with extreme downpours, floods and landslides, CNN reported.
In recent days, intense rainstorms have battered much of northern China in densely populated areas.
Footage on social media showed floodwaters sweeping through residential communities, washing away cars, knocking down electricity poles and turning streets into rivers, CNN said.
