Federal Reserve Chair Jerome Powell is preparing to address the annual Jackson Hole, Wyoming, economic forum as the Trump administration pushes for an interest rate cut in September. Bill Watts, a markets editor for MarketWatch, joins CBS News with more.

Jackson

Federal Reserve Chair Jerome Powell is preparing to deliver a closely watched speech at the Jackson Hole forum, as pressure mounts from both market participants and the White House for a potential interest rate cut. While recent trade agreements between the U.S. and European Union have provided some clarity on tariffs for key sectors, the market's attention remains focused on the Federal Reserve's next move.

Despite widespread anticipation for a clear signal of a rate cut, Powell is expected to avoid making a firm commitment, instead opting to keep policy options open. Minutes from the latest Fed meeting indicate ongoing concerns about the impact of tariffs on inflation and the labor market, making it unlikely that Powell will definitively announce an easing of rates at this time.

Powell addressing Jackson Hole forum as pressure mounts for rate cut

Welcome back to CBS News 24-7. We're watching your money right now. The U.S. and the European Union have revealed new details about the framework of their trade agreement made last month. In a joint statement, the two sides say the agreement puts their trade and investment relationship on solid footing. Both sides intend for the agreement to be a first step in a process that they say can be further expanded over time. Market Watch, Money Watch editor Bill Watts joins us now. Bill, what are the details? They say the devil's in the details, so tell us what they are. Right, and I think, you know, people were eager to see what was actually agreed to and to have it on paper, so that's what we got today. I think the big thing there was just in terms of clearing up some uncertainty around lumber, semiconductor chips, and pharmaceuticals. So, and basically in that, we saw that the document basically affirmed that there would be a maximum 15% tariff on those items. And, you know, I think that was something people wanted to see on paper, you know, better than, you know, wasn't clear if that was gonna be the ceiling or the floor. So, I think the fact that that was the ceiling is probably providing some relief for those sectors. But overall, the market didn't really have, you know, much in the way of a reaction to that. The focus is really still on next, tomorrow, and what we hear from the Fed Chair. Yeah, let's talk about that. Fed Chair Jerome Powell, arguably counting his last days on the job, his term ends May of next year. President Trump is no fan of Mr. Powell. So, what are you watching for in his final major speech as the Fed Chair, and are we getting a sense of who will replace him? Well, I think the question of who replaces him is a bit wide open at the moment. There are several candidates in the running, but it seems like the White House has expanded that process rather than narrowed it down, I believe. As far as Powell's speech goes, I don't think there's, well, I think the market is really looking for some sort of indication that a rate cut is definitely coming in September. And certainly, the White House wants that as well, but I think there's a good chance that we don't see that sort of commitment from Powell. He's very likely to want to leave his options open. We saw in the minutes of the last Fed meeting that were released yesterday, that there was a pretty widespread concern about what the tariff impact will be on inflation in coming months. So, he's probably not going to rule out a quarter point cut, because there are concerns about the labor market, but it may be too early for him to forcefully signal that an easing is definitely on the way. Markets editor, MarketWatch, Bill Watts. Nice to talk to you today. Thank you so much.

Israel has intensified its assault on Gaza City, launching a new operation to seize it while planning the forced displacement of nearly one million Palestinians to southern zones.

Jerusalem

Middle East Conflict

Israel begins Gaza City operation

A New York appellate court threw out a $527 million penalty in the civil fraud case against President Trump and several others. CBS News' Aaron Navarro reports.

New York

Trump civil fraud case $527 million penalty thrown out

The U.S. and the European Union have locked in a framework trade deal that includes a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.

Washington

Global Tariffs

U.S. and EU lock in trade deal

Israel says it began its military operation to take control of Gaza City. This comes after an apparent Hamas attack in Khan Younis targeting Israeli soldiers.

Israel says it began Gaza City expansion

After weeks of pushback from Democrats, House Republicans in Texas have passed controversial legislation to redraw the state's congressional map, giving the GOP an advantage in multiple seats.

Austin

Texas House passes controversial GOP redistricting map

U.S. President Donald Trump’s top-down diplomacy has experts in Ukraine skeptical about whether there has been enough preparation for proposed talks to actually end the war between Russia and Ukraine.

Moscow

Ukraine Invasion

Russia signals more talks needed before Zelenskyy-Putin meeting

The Texas House on Wednesday night passed a controversial, Republican-backed proposal to redraw the state's congressional maps. The bill now moves onto the Texas Senate. CBS News reporter Erica Brown has more.

Texas

Texas House approves GOP congressional redistricting map

Israel's military has called up tens of thousands of reservists in preparation for an expected assault on Gaza City, as the Israeli government considered a new proposal for a ceasefire after nearly two years of war.

Israel calls up 60,000 reservists ahead of Gaza City operation

The Trump administration says it is adding 407 items to the list of "derivative" steel and aluminum products subject to higher tariffs. The list includes products like car parts, household appliances, baby strollers, fire extinguishers and spray deodorants.

Trump expanding steel and aluminum tariffs

NATO military chiefs met virtually Wednesday for what was described as a candid discussion about security guarantees the alliance would be willing to provide to Ukraine in an effort to end Russia's war in the region.

Brussels

NATO chiefs meet virtually about potential Ukraine security guarantees

Israel's military leaders approved the next phase of their ongoing offensive in the territory. The operation will shift focus to Gaza City, targeting areas where Hamas is believed to still be active and where Israeli forces have not yet operated.

Israel approves next phase of Gaza offensive, focus on Gaza City

Despite not making landfall, Hurricane Erin is forcing mandatory evacuation orders in parts of North Carolina and is expected to cause rip currents for days along the U.S. East Coast.

North Carolina

Hurricane Erin forces evacuations on U.S. East Coast

The White House says it is working to secure a meeting between the presidents of Russia and Ukraine, which both have agreed to, while plans continue to create security guarantees for Ukraine.

Trump says no U.S. ground troops will be sent to Ukraine

Hamas has agreed to a ceasefire proposal for Gaza, but mediators are still waiting for an official response from Israel. CBS News contributor Robert Berger has the latest from Jerusalem.

Mediators await Israeli response to Gaza ceasefire proposal

Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

India's Modi meets China's foreign minister to rebuild ties

Texas Democrats who ended a walkout found themselves shadowed by law enforcement officers to keep them from repeating the protest that stalled Republican efforts to redraw congressional districts and fulfill President Donald Trump's desire to reshape U.S. House maps.

Police escort Texas Democrats to prevent new redistricting walkout

Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

Air Canada reaches tentative agreement with flight attendant union

Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

Ex-Hong Kong lawmaker granted asylum by Australia

Forecasters are giving urgent warnings to millions of people who live along the East Coast as Hurricane Erin churns in the Atlantic. The storm will not make direct landfall but is expected to bring dangerous rip currents.

East Coast of the United States

Hurricane Erin to bring dangerous rip currents to U.S. East Coast

Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

Los Angeles

"Ketamine Queen" to plead guilty in Matthew Perry's death

European leaders who converged on the White House for talks on the Russia-Ukraine war demonstrated a united front regarding Ukraine's security on Monday, underscoring the issue as pivotal for the entire continent, not just Ukraine.

EU leaders show cautious optimism following Zelenskyy, Trump talks

As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

Israel digs in on Gaza takeover as Hamas softens on ceasefire

President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

Trump tells Zelenskyy U.S. would help with security in a peace deal

Bolivia's presidential vote headed to an unprecedented runoff after elections Sunday that ended more than two decades of left-wing dominance in the Andean nation but signaled voters' trepidation about a major lurch to the right.

La Paz

Bolivia heads to runoff after historic defeat for the left

All Air Canada planes were grounded on Monday (August 18) after its 10,000 flight attendants refused a return-to-work mandate from the Canadian government.

Air Canada delays plans to resume operations

Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

Trump meeting with Zelenskiy, European leaders at White House

Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

Reports: Hamas accepts latest Gaza ceasefire proposal

Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

Erin expected to bring dangerous conditions to U.S. East Coast

Ahead of his Monday meeting with President Trump, Ukrainian President Volodymry Zelenksyy says his country will not give up any territory to Russia, even as the White House insists potential land swaps will be necessary. Willie James Inman reports.

Kyiv

Ahead of Trump meeting, Zelenskyy says won't give territory to Russia

Thousands of Israeli protesters demanded a deal to secure the release of hostages still held by Hamas in one of the biggest demonstrations since the war in Gaza began. Debora Patta reports.

Breakdown