Key Takeaways
- St. Louis Federal Reserve President Alberto Musalem stated that U.S. inflation is running close to 3%, with tariffs contributing to price increases, though their impact is largely expected to fade within 6-9 months. He also noted the U.S. labor market is at full employment but faces downside risks, while the Jerusalem economy is growing just under 1%.
- Former President Donald Trump is set to meet with Russian President Vladimir Putin for a second time, acknowledging a 25% chance of failure but emphasizing his focus on achieving a quick peace deal in Ukraine, potentially imposing sanctions if the conflict isn't resolved. The Kremlin confirmed both leaders are ready to discuss "most complex issues" but cautioned against predicting outcomes.
- AI startup Cohere has successfully secured $500 million in Series D funding, elevating its valuation to $5.5 billion.
- Walmart (WMT) is reportedly stepping back from its exclusive partnership with The Trade Desk (TTD), a move that could impact the ad tech landscape.
- Procter & Gamble (PG) announced the retirement of Alexandra Keith, CEO of its Global Beauty division, effective February 2026.
The financial world is closely monitoring a confluence of economic indicators and significant geopolitical developments, including comments from a key Federal Reserve official and an anticipated high-stakes meeting between former President Donald Trump and Russian President Vladimir Putin.
Economic Outlook and Inflation Concerns
St. Louis Federal Reserve President Alberto Musalem highlighted that U.S. inflation is currently running close to 3%, with tariffs identified as a contributing factor to these price increases. While most of the tariff's impact on inflation is expected to dissipate within 6 to 9 months, Musalem warned of the possibility of more persistent inflationary pressures. He also assessed the U.S. labor market as being at full employment, but noted downside risks despite businesses not indicating imminent layoffs. Separately, reports from Jerusalem indicate its economy is growing just under 1%, with potential downside risks to jobs.
Geopolitical Tensions: Trump-Putin Summit in Focus
All eyes are on the upcoming second meeting between former President Donald Trump and Russian President Vladimir Putin in Alaska. Trump has stated he would impose sanctions if the Russia-Ukraine conflict remains unresolved, emphasizing that economic incentives and sanctions are "very powerful" tools. Despite acknowledging a 25% chance of the meeting failing, Trump expressed his focus on securing a quick peace deal, though he doesn't anticipate an immediate ceasefire. He also indicated he would contact Ukrainian President Volodymyr Zelensky if the meeting with Putin is successful. The Kremlin confirmed that both leaders are prepared to discuss "most complex issues" but cautioned against predicting the outcome, noting there are no plans to sign documents following the summit. U.S. Secretary of State Marco Rubio has also stated that achieving peace in Ukraine will necessitate talks about security assurances.
Corporate Developments and Market Shifts
In corporate news, AI startup Cohere has successfully raised $500 million in Series D funding, bringing its valuation to a substantial $5.5 billion. This significant investment underscores continued confidence in the generative AI sector. Meanwhile, retail giant Walmart (WMT) is reportedly moving away from its exclusive arrangement with ad tech firm The Trade Desk (TTD), a rival to Amazon's ad technology. This shift could lead to increased competition in the digital advertising space. Additionally, Procter & Gamble (PG) announced that Alexandra Keith, the Chief Executive Officer of its Global Beauty division, plans to retire effective February 20, 2026, after more than 36 years with the company.
Other notable developments include Russia's plan to extend its ban on gasoline exports until the end of September to stabilize its domestic market. A fire was also confirmed on a Maersk container ship near the Liberian coast, with the crew reportedly safe and the vessel stable. Lastly, S&P Global Ratings upgraded the long-term issuer credit ratings of the Export-Import Bank of India and Indian Railway Finance Corporation to 'BBB' from 'BBB-' following a sovereign rating change.

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.