Trump’s meeting with Zelensky in Washington was calmer than earlier encounters, and discussions with European leaders added momentum. While Trump claimed a phone call with Putin could pave the way for a trilateral summit, divisions remain sharp, Ukraine resists territorial concessions while Russia continues to demand them.

The Fed minutes revealed growing divisions within the Committee. Some governors urged early cuts amid signs of a cooling labor market, while others remained focused on persistent inflation. The disagreement highlights the Fed’s difficult balancing act.

At Jackson Hole, Chair Powell signaled a September cut was on the table, warning about labor market risks while acknowledging inflation’s complexity. Markets rallied in response: the Dow hit a record high, the S&P 500 posted its best day in months, and Treasury yields fell as traders priced in an 83% chance of a September cut.

Wall Street delivered its strongest earnings season in two decades, with 60% of S&P 500 companies beating forecasts. In the U.K., inflation rose to 3.8% in July, driven by soaring airfares. Meanwhile, the Reserve Bank of New Zealand cut rates to 3% as growth stalled, highlighting pressure from U.S. tariffs and weak domestic demand.

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