Key Takeaways
- Chicago Federal Reserve President Austan Goolsbee expressed confidence in the U.S. economy's "golden path," noting inflation's trajectory towards the 2% target and a stable 4% unemployment rate, suggesting the possibility of achieving price stability without a recession.
- Former President Donald Trump issued a stern warning to Russian President Vladimir Putin, stating there would be "very severe consequences" if Russia fails to agree to end the Ukraine war following their summit in Alaska this Friday.
- Ukrainian President Volodymyr Zelenskyy emphasized that international sanctions are "very helpful and are hitting Russia's war economy hard," despite Putin's attempts to project indifference.
- Donald Trump also declared that Washington D.C. statehood would be "unacceptable."
Chicago Federal Reserve President Austan Goolsbee provided an optimistic outlook on the U.S. economy, participating in a moderated Q&A session at the "Regional Insight, National Impact: A Monetary Policy Luncheon" hosted by the Greater Springfield Chamber of Commerce in Springfield, Illinois, on August 13. Goolsbee highlighted that inflation is on a path toward the Fed's 2% target, while the unemployment rate remains at 4%. He described this scenario as a "golden path," noting the unprecedented nature of inflation falling significantly without a corresponding rise in unemployment, defying conventional economic wisdom that often predicts a recession is necessary to curb inflation. His remarks covered critical topics including economic trends, the latest inflation data, the Fed's approach to interest rate decisions, labor market shifts, and the impact of tariffs and innovation.
Meanwhile, geopolitical tensions surrounding the Ukraine conflict intensified as former President Donald Trump issued a strong warning to Russian President Vladimir Putin. Trump stated that there would be "very severe consequences" if Putin does not agree to end the war after their planned summit in Alaska this Friday. French President Emmanuel Macron confirmed Trump's clear intention to pursue a ceasefire at the U.S.-Russia summit. Ukrainian President Volodymyr Zelenskyy, however, expressed skepticism, suggesting Putin is "bluffing" ahead of the meeting and attempting to exert pressure across the Ukrainian front. Zelenskyy underscored the effectiveness of existing sanctions, stating they are "very helpful and are hitting Russia's war economy hard." Trump also indicated a potential future trilateral meeting involving himself, Putin, and Zelenskyy, while European allies remain wary of being sidelined in any peace negotiations.
In domestic news, Donald Trump reiterated his firm opposition to Washington D.C. becoming a state, declaring that "DC Statehood Would Be Unacceptable." This political stance adds to ongoing debates regarding the capital's governance and representation.
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.