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Fed’s Daly says its time to consider US interest rates cuts; Great Britain’s energy price cap tipped to rise 9%
Live  
Fed’s Daly says its time to consider US interest rates cuts; Great Britain’s energy price cap tipped to rise 9%
Rolling coverage of the latest economic and financial news
Headlines
Energy  
Winter energy bills could rise to average of £1,714 a year in Great Britain
Winter energy bills could rise to average of £1,714 a year in Great Britain
Economy  
Labour’s autumn budget must reverse ‘decade of decline’ in UK infrastructure
Norton Motorcycles  
Victims of pension scandal receive £9.4m compensation
Banking  
Race for UK banks to repay £100bn in Covid loans could help savers
The super-rich  
Wealth tax could raise £1.5tn globally, campaigners say
Travel  
Busy August bank holiday road getaway expected as Britons go ‘day-trip crazy’
Housing  
Interest rate cut fuels immediate upturn in UK property market
Ted Baker  
Fashion retailer's remaining stores to close this week, putting 500 jobs at risk
Libya  
Central bank ‘suspends operations’ after official abducted
Travel & leisure  
Britain’s summer weather has improved, but many holiday operators are still gloomy
‘The land is becoming desert’  
Drought pushes Sicily’s farming heritage to the brink
The good tourist  
Can we learn to travel without absolutely infuriating the locals?
Today's agenda
It is time for the US central bank to consider cutting interest rates, one leading policymaker has said.

Mary Daly, the president of the San Francisco Federal Reserve, has called for a "prudent" approach to setting borrowing costs. She insists the economy was “not in an urgent place”, and pointed to recent signs that inflation was easing.

Daly told the Financial Times that recent economic data had given her “more confidence” that inflation was under control.

She said: "After the first quarter of this year, inflation has just been making gradual progress towards 2%. We are not there yet, but it’s clearly giving me more confidence that we are on our way to price stability."

Stock markets tumbled at the start of this month, amid concerns that the Fed had been too slow to start cutting rates. 

It left the Fed funds rate on hold – at a 5.25% to 5.5% range – at the end of July, with its next meeting scheduled for September.

Last week, US inflation fell to a three-year low of 2.9%, bringing relief to investors – as did a 1% rise in retail sales in July.

Only two weeks after raising the odds of a US recession, Goldman Sachs has now cut them again.

The Wall Street bank has lowered the chances of the US slipping into a recession in the next 12 months to 20% from 25%. This follows encouragingly low weekly jobless claims data, and the rise in US retail sales in July.

Energy customers in Great Britain have been warned that the cap on bills will rise this autumn, meaning higher bills for millions over the winter.

The consultancy Cornwall Insight has just released its final forecast for the price cap for October-December 2024 – it predicts it will rise 9% to £1,714 per annum for average households.

That would be an increase of almost £150 a year on the curent levels of £1,568 a year set for July-September.

The regulator, Ofgem, will announce the October cap on Friday.

The cap is a limit to how much energy companies can charge for each unit of energy, so there is no restriction to the amount a consumer can actually run up.

The agenda
• 9am BST: Spanish trade balance for June
• 2.15pm BST: Federal Reserve board governor Christopher Waller gives a speech

We’ll be tracking all the main events throughout the day ...
Opinion
GDP growth is strong but it masks UK plc’s deep-seated structural problems
GDP growth is strong but it masks UK plc’s deep-seated structural problems
Analysis  
High stakes at Jackson Hole symposium as Powell surveys US’s rocky prospects
Editorial  
The Guardian view on hyperlocalism: communities need more oomph
Austerity is still austerity, even under a Labour government
Media
Honey, I lost the kids  
Is generation Z done with Disney?
Is generation Z done with Disney?
‘Threads is deathly dull’  
Have Twitter quitters found what they want on other networks?
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