US Retail Sales
Last night, US retail sales came a lot hotter in August, proving that consumer spending remains resilient even if the tariff problem continues to boost the cost of consumption and the labor market shows signs of softening. However, that does not diminish the Federal Reserve’s rate cut decision this week at all, as the odds exceed 90% to see a 25-bps rate cut, with some expecting a 50-bps cut.
And with an upcoming easing of monetary policy from the Federal Reserve, this is likely to continue to encourage more spending and improve the labor market conditions, although this may also accelerate the cost of living at the same time. With that in mind, as per CNBC, US Treasury Secretary Bessent cited that Trump is open to a rate hike if inflation becomes a problem in the latter phase.
TikTok Deadline
Meanwhile, the TikTok deadline has finally been extended until December 16 as expected, with many big companies desiring to acquire this. The TikTok deal was sealed with similar terms of negotiation earlier in the year, which several companies, including Oracle Corp., Silver Lake, and Andreessen Horowitz, will control over TikTok’s US operations. The next meeting will be on Friday between US President Donald Trump and Chinese leader Xi Jinping.
Geopolitical Development
Israel launched a major offensive to occupy Gaza City, following weeks of airstrikes and operations on the city’s outskirts. This has forced several to flee under the bombing and bullets, making this war fall into even greater tension. Defense Minister Israel Katz declared on X, “Gaza is burning.”, They also admitted that this would take “several months” to control Gaza City. On the same day, a UN-commissioned inquiry concluded that Israel is responsible for committing genocide in Gaza.
In a separate development, Israeli Prime Minister Benjamin Netanyahu revealed that U.S. President Donald Trump invited him to the White House in two weeks.
