Jeffrey Schmid, president and chief executive officer of the Federal Reserve Bank of Kansas City, right, during an interview at the Kansas City Federal Reserve’s Jackson Hole Economic Policy Symposium in Moran, Wyoming, U.S., on Wednesday, Aug. 20, 2025.
David Paul | Bloomberg | Getty Images
Jerome Powell, chair of the U.S. Federal Reserve, will be giving his keynote address at the annual Jackson Hole, Wyoming, gathering of central bankers and economists on Friday stateside.
It’ll be one of the most important speeches by a central bank official — even more so than Powell’s press conferences after the Fed’s rate-setting meetings — because Jackson Hole gives Powell an opportunity to lay out the bank’s longer-term economic frameworks, such as its inflation targets and how it evaluates employment.
For Powell, it’s doubly significant, since the keynote address will probably be his last before his term as Fed chair ends in May 2026.
Even though U.S. President Donald Trump has threatened to evict him from his seat prior to that date, the Supreme Court earlier this year indicated that Fed officials have special protection against presidential firings. (It seems that being a central banker in the U.S. might be the only way to protect yourself from layoffs and displacement by artificial intelligence today.)
That said, the Trump administration doesn’t seem to be relenting its pressure on Fed officials. The Department of Justice will investigate Fed Governor Lisa Cook based on a criminal referral by a White House official, according to a letter obtained by CNBC’s Sara Eisen on Thursday.
In a typical year, Jackson Hole sparks excitement mostly among market watchers and finance nerds (i.e. yours truly). This time, the symposium feels more pivotal, almost like a gathering of people quietly struggling for central bank independence.
What you need to know today
The U.S. and EU announce tariff details. Automotive exports to the U.S. will face a 15% tariff — after the EU introduces legislation to reduce their industrial duties. Pharmaceuticals will see levies capped at a maximum of 15%.Â
Fed Chair Jerome Powell is set to give a big speech on Friday. At Jackson Hole, a gathering of central bankers to talk economic policy, Powell is expected to discuss the Fed’s long-term policy goals — in what will almost certainly be his last keynote there.
Google scores a $10-billion cloud deal with Meta. Under the agreement, Google will provide Meta cloud services mainly related to AI over six years, according to two people familiar with the matter.
Major U.S. indexes had a red Thursday. The S&P 500 fell 0.4% for its fifth losing session in a row. Europe’s regional Stoxx 600 was flat, snapping a three-day winning streak, as investors shrugged off details of the EU-U.S. trade agreement.
[PRO] No relief rally for European pharmaceuticals. Despite U.S. and EU officials announcing that pharmaceuticals will not be subject to higher tariffs, investors don’t appear to trust the deal.
And finally…
Shoppers at the DLF Promenade mall in New Delhi, India, on Oct. 21, 2023. As the number of middle to high-income households climb, India’s consumer market is positioned to become the world’s third largest by 2027, according to estimates by BMI.
Bloomberg | Bloomberg | Getty Images
India’s tax reform plans portend a consumption boom
At a time when U.S. trade tariffs on India have been making headlines, Prime Minister Narendra Modi’s tax relief plans have stolen some of the media limelight.
Modi last week announced a major goods and services tax revamp by October. The simplified code would mean reduced taxes for Indians, likely boosting domestic consumption — and, to some extent, absorbing the hit from Trump tariffs, expert say.
— Ayushi Jindal
