US Fed set for first rate cut of 2025 as Trump pressure looms

The US Federal Reserve is poised to make its first interest rate cut of 2025 on Wednesday, but it battles competing forces in the path forward — with heightened political pressure and likely divisions among its ranks.There is little doubt that the US central bank will lower rates at the end of its two-day policy meeting, and markets widely expect a 25 basis points reduction spurred by a weakening employment market.Less certain, however, are the pace and size of further cuts to come.On Wednesday, the Fed’s rate-setting Federal Open Market Committee (FOMC) opened its second day of deliberations at 9:00 am US Eastern time (1300 GMT) as scheduled, said a spokesperson.Even before the committee convened early Tuesday, moves by President Donald Trump cast uncertainty over its composition.Trump, who has pushed for months for the central bank to slash rates, moved in August to fire Fed Governor Lisa Cook, sparking a legal fight that could have prevented her from attending the rate meeting.Trump also nominated a key economic adviser to the Fed’s board of governors after another official unexpectedly resigned last month, setting in motion a confirmation process that concluded at the eleventh hour.Stephen Miran, who has been chairing the White House Council of Economic Advisers (CEA), was sworn in as a Fed governor right before the FOMC gathering.He has come under fire from Democratic lawmakers for taking a leave of absence rather than resigning from his White House role, a decision he attributed to the short tenure ending January 31 that he fills.- Dissent -Economists expect to see more divisions among the FOMC, as policymakers walk a tightrope balancing the risk of higher inflation due to Trump’s new tariffs and a deteriorating jobs market.Typically, the Fed might be inclined to keep rates at a higher level to bring inflation back to its two-percent target — or slash rates to support a weakening labor market.This time, employment concerns are anticipated to win out, even as inflation remains notably above 2.0 percent.But the economic picture means that officials could dissent in both directions even if most vote for a 25 basis points cut — a situation not seen since 2019.”That’s not a good place to be,” said KPMG chief economist Diane Swonk.”It’s the stagflation reality that we’re living in now,” she said, even if it is just a “mild bout.” This refers to a situation of sluggish growth and rising prices.Fed governors Christopher Waller and Michelle Bowman, who voted against the FOMC’s last decision to hold rates steady — instead seeking a rate cut — could now dissent in favor of a bigger 50 basis points reduction.Miran could also join them, analysts say.But officials like Kansas City Fed President Jeffrey Schmid might favor another path, pushing to keep rates unchanged to curb inflation.”It could be the first meeting where three governors dissent since 1988,” said Deutsche Bank economists in a recent note.Since its last cut in December, the Fed has held interest rates at a range between 4.25 percent and 4.50 percent.- ‘Political attention’ -Miran’s confirmation — without resigning from the CEA — also risks a sense of political influence over Fed decisions, EY chief economist Gregory Daco told AFP.Economists will be monitoring the outcome of the FOMC’s vote and whether Miran pushes for a large rate cut that Trump has repeatedly advocated for.Separately, the legal battle by Cook — the first Black woman on the Fed’s board of governors — could have broader implications for the bank.A federal appeals court ruled late Monday that Cook could remain in position while challenging her removal over alleged mortgage fraud.But the Trump administration plans to appeal this outcome, potentially bringing the case to the Supreme Court.”The backdrop that we’re experiencing, where there is increased political attention on the Fed, is concerning,” Daco said.”History has showed that in times when a central bank is under political influence, the economic outcomes are suboptimal,” he added.This could mean higher inflation, lower growth and more financial market volatility.

Australian teen Gout Gout revels in world championships debut

Australian teen sensation Gout Gout advanced to the semi-finals of the 200 metres at the world championships on Wednesday and immediately vowed to keep emulating Jamaican legend Usain Bolt.The 17-year-old has been compared to Bolt, the 11-time world champion and eight-time Olympic gold medallist, for his similar age-grade progression.Bolt was in the National Stadium in Tokyo to witness the youngster’s senior international debut.”He is the GOAT (greatest of all time),” Gout Gout said of Bolt after qualifying from his heat in third spot in 20.23sec.”Usain Bolt, he’s the actor everyone looks up to, so I’ve just got to keep looking up to him and try and be like him, too.”Gout Gout showed no outward sign of nerves, instead basking in the attention alongside the likes of Olympic champions Noah Lyles, Letsile Tebogo and a clutch of other experienced sprinters.”It feels pretty good, it’s great to be out here competing on the world stage so I’m just happy to be here and I can’t wait for the semi,” said Gout Gout, born to South Sudanese parents who fled the war-torn country via Egypt and arrived in Australia in 2006.”It’s a great experience for me, running against the big dogs, it’s great to be out here and just excited for more.”I just got through to the semis so it is definitely great to know that I’m up against the top 24 in the world pretty much, so it’s just a great experience.”Nerves, he admitted, had been conquered — and a mindset fixed.”Obviously I was a bit nervous but you’ve just got to get out here, have some fun and just enjoy being out here,” he said.”There’s expectation wherever I go so it is what it is, I’ve just got to get out there and do my thing and have a bit of fun.”I definitely enjoyed myself, even though it was a bit hot, but it’s definitely great.”- ‘Run like the wind’ -Gout Gout has a personal best of 20.02sec this season and he acknowedged that dipping under the 20-second barrier — the mark of world-class 200m sprinting — was the aim in Tokyo.”Sub-20, that’s the goal, so let’s see in the semi,” he said.”I just felt that in my heat, everyone wasn’t up against me apart from the top two so I just picked who’s in control of the last 50, last 30 and just qualified, so that’s what I needed.”Gout Gout said he would continue to focus on himself, instead of being star-struck by rivals lining up in the next lanes to him.”These are the biggest athletes in the world and some that I admired when I was younger so I’m just focusing on myself and I’m doing very well so I’ll just keep doing that.”It’s not really hard, my mindset is pretty good so just go out there and do my thing.”The lanky Gout Gout played down concerns over his starts, which he admitted were “not my strong suit”.”As soon as I get into running, I’m chilling so yeah, it’s good,” he said.”I just run with freedom, free here, just go out there, run like a horse, run like the wind.”

Malawi counts votes in tight race for presidentWed, 17 Sep 2025 12:30:18 GMT

Malawi counted votes Wednesday after a general election dominated by economic hardships in the largely poor country that could knock outgoing President Lazarus Chakwera’s chances of winning a second term. Observers said preliminary results from Tuesday’s vote indicated a strong showing for his predecessor and main rival Peter Mutharika, though Chakwera’s party voiced confidence in a …

Malawi counts votes in tight race for presidentWed, 17 Sep 2025 12:30:18 GMT Read More »

S.Africa commission begins probe into alleged links between politics and crimeWed, 17 Sep 2025 12:20:03 GMT

A judicial commission set up by South Africa’s president to investigate explosive claims by a top cop linking politicians to criminal gangs began its public hearings on Wednesday, weeks after a delayed start.Africa’s most industrialised nation is plagued by deep-rooted crime and corruption, fuelled by organised networks. In July, provincial police chief Nhlanhla Mkhwanazi accused police …

S.Africa commission begins probe into alleged links between politics and crimeWed, 17 Sep 2025 12:20:03 GMT Read More »

EU says India’s Russian oil purchases, military drills hinder closer ties

India’s participation in military exercises with Moscow and its  purchases of Russian oil “stand in the way of closer ties” with the EU, the bloc’s top diplomat Kaja Kallas said on Wednesday.”Ultimately, our partnership is not only about trade, but also about defending the rules-based international order,” Kallas said, as she announced the bloc’s strategy to strengthen EU-India ties.Alongside other Moscow allies including Iran, India has taken part in Russia’s Zapad (West) joint drills with Belarus this month, part of which took place close to NATO borders.”Participating in military exercises, purchases of oil — all these are obstacles to our cooperation when it comes to deepening the ties,” Kallas said.Despite a lack of alignment over Russia, the European Union and India are working to conclude talks on a free trade agreement by the end of 2025, amid New Delhi’s own tensions with Washington.US-India ties have been strained since President Donald Trump raised tariffs on most Indian exports to 50 percent last month in retaliation for New Delhi’s continued purchases of Russian oil.The EU is India’s largest trading partner, with trade between the two economic giants up 90 percent over the past decade, EU trade chief Maros Sefcovic said alongside Kallas in Brussels.Senior figures from India and the European Union hope to meet for a high-level summit early next year.”Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU–India strategy, we are taking our relationship to the next level,” EU chief Ursula von der Leyen said on X.The strategy also includes a bid to build stronger ties on defence and security as well as technology and climate issues.

EU says India’s Russian oil purchases, military drills hinder closer ties

India’s participation in military exercises with Moscow and its  purchases of Russian oil “stand in the way of closer ties” with the EU, the bloc’s top diplomat Kaja Kallas said on Wednesday.”Ultimately, our partnership is not only about trade, but also about defending the rules-based international order,” Kallas said, as she announced the bloc’s strategy to strengthen EU-India ties.Alongside other Moscow allies including Iran, India has taken part in Russia’s Zapad (West) joint drills with Belarus this month, part of which took place close to NATO borders.”Participating in military exercises, purchases of oil — all these are obstacles to our cooperation when it comes to deepening the ties,” Kallas said.Despite a lack of alignment over Russia, the European Union and India are working to conclude talks on a free trade agreement by the end of 2025, amid New Delhi’s own tensions with Washington.US-India ties have been strained since President Donald Trump raised tariffs on most Indian exports to 50 percent last month in retaliation for New Delhi’s continued purchases of Russian oil.The EU is India’s largest trading partner, with trade between the two economic giants up 90 percent over the past decade, EU trade chief Maros Sefcovic said alongside Kallas in Brussels.Senior figures from India and the European Union hope to meet for a high-level summit early next year.”Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU–India strategy, we are taking our relationship to the next level,” EU chief Ursula von der Leyen said on X.The strategy also includes a bid to build stronger ties on defence and security as well as technology and climate issues.