Key Takeaways
- Brazil's President Luiz Inácio Lula da Silva is set to sign an executive order creating a 30 billion Reais credit line to support domestic firms impacted by recent tariffs.
- US API data released on August 12, 2025, showed an unexpected 1.5 million barrel build in crude oil inventories, contrasting with analyst expectations for a draw.
- US Treasury Secretary Scott Bessent has advocated for the Federal Reserve to consider a more significant 50 basis-point (0.50%) interest rate cut at its upcoming September meeting.
In a series of significant economic developments, Brazil is moving to shield its industries from trade barriers, while fresh US oil inventory data reveals a surprising build, and a top US official pushes for more aggressive monetary easing. These events highlight the ongoing global economic adjustments and policy responses to various market pressures.
Brazilian President Luiz Inácio Lula da Silva announced his intention to sign an executive order on August 13, 2025, to establish a 30 billion Reais credit line. This measure is designed to provide financial relief and support to Brazilian companies that have been negatively affected by recently imposed tariffs. The move underscores Brazil's proactive stance in mitigating external trade challenges and supporting its domestic economy.
Meanwhile, the energy market reacted to the latest American Petroleum Institute (API) inventory data for August 12, 2025. The data revealed an unexpected increase of 1.5 million barrels in crude oil inventories, defying analyst expectations for an 800,000-barrel draw. This build in crude stocks could exert downward pressure on oil prices. In contrast, distillates saw a modest increase of 300,000 barrels, while inventories at the key Cushing, Oklahoma hub, experienced a draw of 600,000 barrels. The Strategic Petroleum Reserve (SPR) remained unchanged.
Adding to the dynamic financial landscape, US Treasury Secretary Scott Bessent has publicly suggested that the Federal Reserve should consider a more substantial 50 basis-point cut in the benchmark interest rate next month. Bessent's comments come after the Fed opted to skip a rate adjustment at its last meeting. This advocacy from a high-ranking Treasury official signals a potential push for more aggressive monetary easing, which could have significant implications for bond yields, equity markets, and the US dollar.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.