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What We’re Watching: Powell signals rate cuts, Sri Lanka’s anti-corruption push, Gaza starvation confirmed

​Federal Reserve Chairman Jerome Powell attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 21, 2025.

Federal Reserve Chairman Jerome Powell attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 21, 2025.

REUTERS/Jim Urquhart
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Powell opens door to rate cuts

Federal Reserve Chair Jerome Powell signaled the central bank could cut rates as soon as next month during his annual Jackson Hole address, pointing to a slowing labor market and the risk that tariffs could push prices higher. While jobs remain stable, Powell noted that both hiring and labor demand are weakening. Markets jumped on the signal of easing, a win for President Donald Trump, who has been pressing the Fed to cut rates. But as Powell spoke, Trump renewed threats to fire Fed board member Lisa Cook, potentially allowing him to appoint a more sympathetic replacement — though he would face legal hurdles to do so.


Sri Lanka’s anti-corruption push nabs former president

Sri Lanka’s former president Ranil Wickremesinghe, who led the country from 2022 to 2024, was arrested Friday on corruption charges tied to oversees trips while in office. Wickremesinghe came to power following mass protests over the island’s worst-ever economic crisis, and was credited with stabilizing the economy and securing an IMF bailout. That bailout came with harsh austerity, however, fueling public anger and paving the way for his defeat last year to leftist reformer Anura Kumara Dissanayake, who campaigned on rooting out corruption. Wickremesinghe’s arrest is the most high-profile yet in a post-crisis anti-graft drive that has already ensnared 63 Sri Lankan officials and politicians.

Parts of Gaza suffering from starvation, food insecurity group finds

Half a million people in Gaza City and its surrounding areas are suffering from famine, the Integrated Food Security Phase Classification (IPC) concluded. Most other parts of Gaza are experiencing severe hunger, said the food monitor. Whether Gazans have been suffering from starvation has been the subject of much debate – the IPC last year refuted a USAID report that had argued there was famine. Recent images from Gaza, as well the IPC’s reversal, tell their own story. Israeli Prime Minister Benjamin Netanyahu denies that there is starvation, and is pressing forward with plans to conquer Gaza City.