Geopolitical Tensions Escalate as Hamas Issues Ultimatum; Fed’s Goolsbee Signals Potential Rate Cuts Amid Inflation Concerns

Hamas' armed wing spokesperson has issued a significant warning, stating that if a deal is not reached during the current ceasefire talks, the group might reject any temporary truces proposed in the future. This declaration underscores the critical nature of ongoing negotiations. The spokesperson also indicated that Hamas has proposed to free all hostages held in Gaza as part of a broader peace agreement aimed at ending the conflict. Amidst these diplomatic statements, the group's military voice has also declared preparedness for an extended battle with Israel, signaling a readiness for a long-term engagement.

Federal Reserve Governor Charles Goolsbee provided insights into the central bank's monetary policy outlook, suggesting that interest rates could "go down a fair bit over the next year." However, Goolsbee expressed being "a little wary" about the latest Consumer Price Index (CPI) data, which indicates that tariffs are contributing to rising goods inflation. He also commented that it "pains me" to witness arguments regarding the independence of the Federal Reserve, emphasizing the importance of the institution's autonomy.

In the automotive sector, Nissan (7201.T) has announced plans to cease vehicle manufacturing operations at its Oppama plant in Japan by 2027. The company is reportedly working on a cooperative agreement with relevant stakeholders to manage this transition. This move reflects ongoing strategic adjustments within the global automotive industry.

Separately, Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan held a phone conversation. Details of their discussion were not immediately available, but such high-level talks often cover regional security, economic cooperation, and international affairs.