Economy

The Fed vs Inflation
Fed top: Worse job market opens the door to a reduction

The Federal Reserve should consider a rate cut at its next meeting in September amid rising unemployment. That is what the head of the Fed in Minneapolis, Neel Kashkari, told the WSJ.

- The risk balance has shifted towards the labor market and away from the inflation side [...] so the debate about a potential interest rate cut in September is appropriate to have.

As recently as June, Kashkari estimated that a reduction would not be on the cards until the end of the year. But the calculation has been changed by the fact that unemployment has risen from 3.7 to 4.3 percent this year, he says.

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Germany denies: "We continue to support Ukraine"

Germany will continue to support Ukraine with military equipment. This is now said by the German government's spokesperson Wolfgang Büchner, according to AFP.

- Reporting that we are reducing our support is simply wrong, he said on Monday.

Even Fabian Leber, who is the spokesperson for the German Ministry of Finance, repeats Büchner's message, reports Bloomberg.

- We continue to stand side by side with Ukraine. We will, of course, support Ukraine as long as it is needed, he said.

Parts of the support from Germany to Ukraine will, among other things, come from frozen Russian central bank assets, according to Leber.