Reuters World News - Famine in Gaza, Putin's demands, Russia’s economy and Jackson Hole

Starting point is 00:00:01 Today, a global hunger monitor says famine has struck a part of Gaza. FBI agents search John Bolton's home. Putin's demands for Ukraine, as Russia's economy creaks under the strain of war. And Fed Chair Powell's speech walks a tightrope at Jackson Hole. It's Friday, August 22nd. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes, seven days a week. I'm Tara Oaks in Liverpool. And I'm Christopher Walgessper in Chicago.

Starting point is 00:00:46 Come what may, we will not allow a one-time increase in the price level to become an ongoing inflation problem. U.S. Federal Reserve Chair Jerome Powell, laying out the tensions facing the financial regulator at the annual Jackson Hole Economic Policy Symposium. In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation. Powell pointed to a possible rate cut in September, but didn't offer further clues about additional moves. He pointed to a series of unexpected economic factors that have arisen this year. Significantly higher tariffs across our trading partners are remaking the global trading system. Tighter immigration policy has led to an abrupt slowdown in labor force growth. Over the longer run, changes in tax, spending, and regulatory policies may also have important implications.

Starting point is 00:01:39 for economic growth and productivity. Our Fed reporter, Howard Schneider, is in Jackson Hole and says that the tension has created two schools of thought within the Fed. There's a debate on the federal open market committee now among sitting policymakers about whether or not they continue to anchor their decisions because they're so uncertain about what the tariffs are going to mean for inflation, what the change in labor force growth because of tighter immigration rules is going to mean for wages and inflation,

Starting point is 00:02:15 what the tax cuts might mean, how it all adds up. And it's just kind of, all right, we need to hold the line and be dead certain we're going to get back to 2% before we do anything. We want to see it in the numbers and be really certain about what's around the corner before we do anything. There's another faction which says, listen, tariffs act like a tax. it can increase prices and slow growth, but the price effects will dissipate.

Starting point is 00:02:41 And even if it falls predominantly on consumers, it's just going to be one-off, and then inflation will go back down. We can count on that happening end of this year, early next year. So forget about the tariffs. There's not going to be inflation. We've got to protect the job market. We need to move now. FBI agents have searched the home of John Bolton. According to a source, the raid was part of a national security investigation. The New York Post says that FBI director Cash Patel ordered the probe. Bolton served in U.S. President Donald Trump's first term as U.S. ambassador to the United Nations and national security advisor. But since then, he's become a fierce critic

Starting point is 00:03:25 of the Republican president, calling him unfit to serve. Representatives for the FBI and the White House did not immediately respond to a request for comment. Famine has struck an area of Gaza and will likely spread over the next month, according to a global hunger monitor. The integrated food security phase classification system says nearly a quarter of Palestinians in Gaza are experiencing famine. And that's due to rise to over 600,000 by the end of September. The assessment will escalate pressure on Israel to allow more humanitarian aid into the war-torn Palestinian enclave. In response to the report, Israel's foreign ministry says there is no famine in Gaza. Now to a Reveillance-Royt's exclusive revealing Russian President Vladimir Putin's demands to Ukraine.

Starting point is 00:04:24 Sources close to the Kremlin say that Putin is calling for Kiev to give up the Dombas, drop its NATO ambitions and keep Western troops from its soil. The Russian president reportedly pitched a deal to U.S. President Donald Trump during their Alaska summit, offering to freeze front lines elsewhere. Ukraine's president, Velodemez Zelensky, has called the eastern Dombas region a fortress holding back deeper Russian advances. He's repeatedly rejected any deal that gives up internationally recognized land. Russia controls a fifth of Ukraine at the moment, an area the size of Ohio, and says the war will go on if Kiev refuses. The White House and NATO didn't immediately respond

Starting point is 00:05:09 requests for comment on the Russian proposals. And while Putin demands Western troops be kept off Ukrainian soil, military chiefs from the US and Europe have presented security guarantee options for Ukraine to their national security advisors. That follows President Trump's pledge to help protect the country under any deal to end Russia's war. Sources say European countries would provide the lion's share of forces under the security guarantees. Trump has ruled out deploying U.S. but left open the possibility of US air support. The Russian sources say that Putin has compromised on some of his earlier territorial demands, which had required Kiev to cede the entirety of the four provinces Moscow claims as part of Russia.

Starting point is 00:05:58 And we've heard from another source that though economic issues are secondary for Putin, he understands the economic vulnerability of Russia and the scale of the effort needed to go further into Ukraine. Three and a half years into the war, Russia's economy is cooling, and some officials are warning of recession risks. Alex Marrow covers the Russian economy. Initially, Russia's economy contracted in 2022. That was after Western countries imposed massive sanctions on Russia. But in 2023 and 2024, thanks to a serious fiscal injection in the term of defence spending, the economy actually rebounded quite well. But this year, inflation has finally got the better of Russia and they've had to hike interest rates

Starting point is 00:06:44 up to 21%. And that's been a serious drag on growth. In June, the economy minister warned that Russia was on the brink of recession. Russia has continued managing to send its exports abroad, particularly to countries like India and China. But at the same time, revenues on the energy side are starting to come down a little bit this year. And that's partly why Russia's budget deficit has widened so much in 2025 to the point where policymakers are now having to find ways to, if they want to maintain high defence spending, they're going to have to either cut spending in other areas or raise taxes. And while peace efforts continue, there's been a breakthrough in one episode that sharpened tensions between Russia and the West, the 2022 Nord Stream pipeline

Starting point is 00:07:35 attacks. Italian police have arrested a Ukrainian man suspect, of coordinating the underwater explosions that crippled Russia's gas links to Europe. No one has taken responsibility for the blasts and Ukraine has denied any role. Donald Trump is claiming total victory after a New York appeals court has thrown out his half a billion dollar civil fraud penalty. The five-judge panel found problems with how the trial judge handled the case, while keeping the underlying fraud finding intact. New York Attorney General Letitia James says she will appeal. Lyle Menendez faces a parole hearing today after 35 years of a life sentence for the shooting of his parents in their Beverly Hills home.

Starting point is 00:08:27 His brother, Eric Menendez, was denied parole on Thursday. That's despite a 10-hour hearing where he argued he's been rehabilitated and setting him free would help heal his family. But California parole officials say he still put. poses a quote, unreasonable risk to public safety. Convierre to your passion in a business with Shopify and bathe records of ventas with the form of pay with a better conversion of the world. Has you heard it? The mejor conversion of the world.

Starting point is 00:09:03 The incredible system of Pago of Shopify facilitates on your site web, in the networks, and in whatever place. That is music for your ears. No, let's more whiltas. Your business will be a super-exit with Shopify. Empeza your period of peri peri peri per centi per centi bar records

Starting point is 00:09:21 Today it's a Friday so time for a recommended listen A new episode of our long form on assignment podcast will drop tomorrow all about the fight for Congo's critical minerals

Starting point is 00:09:38 you'll be able to get it wherever you get your pods For more on any of the stories from today check out Reuters.com or the Reuters app don't forget to follow us on your favorite podcast player. If you're listening on a smart speaker, just ask for the latest news from Reuters seven days a week.

Starting point is 00:09:57 We'll be back tomorrow with our daily headline show.

Reuters World News - Famine in Gaza, Putin's demands, Russia’s economy and Jackson Hole

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.