Key Takeaways
- Federal Reserve Governor Michelle Bowman strongly advocated for three interest rate cuts in 2025, citing a weakening U.S. labor market and increasing confidence that inflation is moving towards the 2% target.
- Iran has voiced firm opposition to the U.S.-backed Zangezur corridor, a proposed transit route linking Azerbaijan to its Naxcivan exclave, threatening to block its construction due to concerns over altered borders, Armenian fragmentation, and reduced Iranian regional influence.
- The NASA and SpaceX Crew-10 mission successfully concluded its nearly five-month stay on the International Space Station, with the Crew Dragon Endurance splashing down safely off the coast of San Diego, California, marking a significant milestone as the first Pacific Ocean landing for NASA's Commercial Crew Program.
- Bo Hines, head of the White House Presidential Council of Advisers for Digital Assets, announced his departure to return to the private sector, after having played a key role in shaping the Trump administration's pro-innovation stance on crypto policy, including initiatives for a strategic Bitcoin reserve and stablecoin framework.
- Mexico has implemented minimum prices for fresh tomato exports to the U.S. in an effort to resolve a trade dispute and regain full market access, following the Trump administration's imposition of a 17% anti-dumping duty.
Federal Reserve Governor Michelle Bowman on Saturday signaled strong support for three interest rate cuts in 2025, emphasizing concerns about a softening U.S. labor market and a more confident outlook on inflation nearing the central bank's 2% target. Bowman, who dissented from the Federal Open Market Committee's (FOMC) decision last week to maintain the current Fed rate between 4.25% and 4.5%, cited "signs of fragility in labor market conditions" as a primary driver for her stance. She noted that payroll growth had decelerated to an average of 35,000 jobs monthly over the quarter ending in July, with the unemployment rate rising to nearly 4.2%. Bowman believes that proactively easing the moderately restrictive policy stance towards a neutral setting would mitigate risks to employment, without leading to persistent inflationary pressures from tariffs. The Fed has three remaining policy meetings scheduled this year: September, October, and December.
Geopolitical tensions are escalating in the South Caucasus as Iran vehemently opposes the creation of a U.S.-backed transit corridor near its border, linking Azerbaijan to its Naxcivan exclave. An aide to Supreme Leader Ayatollah Ali Khamenei stated Saturday that Iran would block the so-called Zangezur corridor "with or without Russia's help." Tehran views the corridor, which was part of a peace agreement between Armenia and Azerbaijan mediated by U.S. President Donald Trump, as a threat that would alter borders, fragment Armenia, and significantly reduce Iran's crucial role as a regional transit hub for energy and goods. The proposed corridor, which would be managed by an American company for a 99-year lease, is seen by Iran as a "political plot" that could allow NATO to position itself between Iran and Russia, undermining regional security and reshaping the geopolitical map.
In space news, the NASA and SpaceX Crew-10 mission successfully splashed down to Earth on Saturday, August 9, after completing a nearly five-month (148-day) mission aboard the International Space Station (ISS). The Crew Dragon Endurance capsule, carrying NASA astronauts Anne McClain and Nichole Ayers, JAXA (Japan Aerospace Exploration Agency) astronaut Takuya Onishi, and Roscosmos cosmonaut Kirill Peskov, landed safely in the Pacific Ocean off the coast of San Diego, California, at 11:33 a.m. EDT. This marks the first time a NASA Commercial Crew Program mission has landed in the Pacific, with recovery teams quickly securing the spacecraft and crew. During their extensive stay, the crew conducted numerous scientific experiments, contributing to research on long-duration spaceflight's effects on the human body and preparing for future missions beyond low Earth orbit.
In the realm of digital assets, Bo Hines, the head of the White House Presidential Council of Advisers for Digital Assets, announced his resignation on Saturday, stating he would return to the private sector. Hines, appointed by President Trump in December 2024, played a pivotal role in advancing the administration's pro-innovation crypto agenda, including efforts to establish a strategic Bitcoin reserve and develop a stablecoin framework. His departure comes after the Council published a comprehensive report in July outlining a regulatory action plan for U.S. digital assets. Patrick Witt, currently the council's deputy director, is expected to succeed Hines. Hines will retain an advisory role to assist White House AI and Crypto Czar David Sacks with AI-related initiatives.
Meanwhile, Mexico has taken steps to resolve its trade dispute with the United States over tomato exports by setting minimum prices for fresh tomatoes. This move aims to regain full access to the U.S. market after the Trump administration imposed a 17% anti-dumping duty in mid-July. The U.S. had previously withdrawn from a trade agreement that regulated tomato exports, accusing Mexican growers of selling at unfairly low prices. The new minimum prices are intended to prevent price distortions and enhance national competitiveness, though the tariffs had already led to expectations of higher consumer prices and reduced demand in the U.S.
In other global developments, Russian President Vladimir Putin and Brazilian counterpart Luiz Inácio Lula da Silva discussed cooperation among BRICS countries, whose loose alliance has reportedly been energized by U.S. tariff policy. This highlights ongoing shifts in global economic and political alliances. Separately, Russian media reported that Russian air defense units destroyed 121 Ukrainian drones overnight, amidst ongoing drone warfare in the conflict. Ukrainian officials also reported various Russian drone and missile attacks across several regions, causing casualties.
Finally, Rosa Villavicencio is set to be confirmed as Colombia's foreign minister, a critical appointment as the Andean nation faces increasingly strained relations with the United States and neighboring Peru. Villavicencio, previously Deputy Foreign Minister, assumes the role amidst diplomatic crises, including a recent protest from Peru regarding a Colombian military plane violating its airspace. Her appointment follows the resignation of Laura Sarabia and comes at a time when Colombia's foreign policy is under scrutiny.
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.