Key Events Around the Globe Investors Must Know

Powell Says Outlook, Shifting Balance of Risks ‘May Warrant’ Lower Rates 

Federal Reserve Chair Jerome Powell delivered a highly anticipated speech before the Jackson Hole Economic Symposium on Friday, although he touched on the outlook for monetary policy only briefly.

In prepared remarks, Powell noted the labor market remains near maximum employment and inflation has come down a great deal from its post-pandemic high, but cautioned “the balance of risks appears to be shifting.”

Powell said the risks to inflation are tilted to the upside, while the risks to employment are tilted to the downside, which he called “a challenging situation.”  

Japan Inflation Eases to 3.1%  

Japan’s inflation softened further in July to the lowest level in eight months but continued to remain above the 2 percent target. Core inflation that excludes fresh food costs eased to 3.1 percent in July from 3.3 percent in June. Meanwhile, economists had expected inflation to remain stable at 3.3 percent. The headline inflation was also 3.1 percent in July, down from 3.3 percent  

 German Economy Shrank 0.3% in Second Quarter as US Tariffs Slowed Exports  

Germany’s economy shrank by 0.3% in the second quarter compared with the first three months of the year, as demand from its top trading partner, the United States, slowed following months of buying ahead in anticipation of U.S. tariffs. The statistics office revised on Friday its preliminary reading of a 0.1% contraction, further dimming expectations of a sustained recovery by Europe’s biggest economy this year. 

Source: HDFC Securities Prime Daily, 25 August 2025 

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