Trump announces appointments for two significant economic posts

Trump announces appointments for two significant economic posts

In the world of politics and economics, August 2025 has been a month of significant developments. Here's a roundup of some of the key events that have taken place.

International Tensions

• Chinese authorities summoned Nvidia over alleged security vulnerabilities in the semiconductor giant's artificial-intelligence chips. Tensions between China and the US continue to rise, with the protectionist moves having little major impact on the US economy, but key indicators suggesting trouble.
• The US is facing fresh pressure from Israel over its war in Gaza, and the rift between the US and Brazil is deepening. On the other hand, India and China pushed back against the White House's threats to impose secondary tariffs on countries buying Russian oil.
• Following the joint naval drills, China and Russia plan to carry out patrols in parts of the Pacific. This strengthening alliance between China and Russia has raised concerns in various quarters.

Economic Developments

• The Trump administration has imposed new sanctions and visa blocks on Palestinian officials, and Trump announced new tariff rates for a host of US trading partners. These moves have led to a drop in stock markets around the world.
• However, there are some positive economic indicators. Microsoft became the second-ever $4 trillion company after its shares soared on the back of better-than-expected earnings. Figma shares more than tripled in the company's New York trading debut, suggesting a turnaround in the tech IPO landscape.
• The number of obese people worldwide exceeded the number of underweight people since 2016, a concerning development for global health.

Political Appointments and Changes

• Following recent actions by President Donald Trump, the status of key posts at the Federal Reserve and the labor-market statistician is in flux. Trump has narrowed the candidates for the next Fed Chair to three Wall Street allies who favor lower interest rates consistent with his economic agenda. He also appointed Stephen Miran, his White House economic adviser, to fill a vacancy on the Fed Board temporarily.
• Trump fired Erika McEntarfer, the Commissioner of the U.S. Bureau of Labor Statistics, hours after a jobs report showed a sharp slowdown in hiring and downward revisions of previous job estimates. This move has raised concerns about politicizing economic data and risks undermining trust in US labor-market statistics.

Humanitarian Crises

• Mass starvation in Gaza is a growing concern, as highlighted by a visit by two American officials to Gazan food distribution sites. The White House is expected to announce a new senior Federal Reserve official and a top labor-market statistician in the coming days, potentially offering some relief to the economic woes in Gaza.
• Southern Asia and Latin America saw particular gains in the fight against hunger, with the percentage of the world's population experiencing food shortages decreasing.

Scientific Advances

• Two human trials of mRNA technology raised hopes of an effective HIV vaccine. The world's "oldest baby" was born using a 30-year-old frozen embryo, marking a significant milestone in reproductive medicine.

Political Unrest

• A hard-right Israeli minister, Itamar Ben-Gvir, sparked fury by praying at a disputed holy site in Jerusalem. El Salvador's legislature approved constitutional amendments removing term limits, potentially allowing its President Nayib Bukele to rule for life.
• Ukrainian President Volodymyr Zelenskyy called for regime change in Russia after drones hammered his country once more. Russian internet service providers are obliged to work with the government, and attackers use them to plant malware on diplomats' computers. Kremlin-backed hackers are targeting foreign embassies in Moscow, according to Microsoft.

Diplomatic Tensions

• The US Senate voted to block weapons sales to Israel, signaling a break in the bipartisan consensus in Washington backing its ally. The US imposed fresh sanctions on people and organizations linked to Iran, intensifying its pressure on Tehran.
• Jordan and Saudi Arabia condemned the visit, which one leading Israeli analyst said aimed to scupper a potential Gaza ceasefire deal.

Geopolitical Developments

• Russia's nuclear strike capabilities were warned about by Medvedev in a Telegram post, which Trump's order was given in response to. Trump accused Medvedev of "throwing around the 'N word (Nuclear!)" in July. New US sanctions on Russia are considered a "step towards war" by Medvedev.
• China is pivoting away from consumer subsidy efforts and toward combating deflation and price wars. Russia is moving towards a more aggressive stance, with its military drills and threats of nuclear capabilities.

As we move into September, these developments will likely continue to shape the global landscape. Stay tuned for more updates.

1. The escalating tensions between global powers are not only confined to politics but are also spilling over into the realm of technology, as Chinese authorities summoned Nvidia over alleged security vulnerabilities in its artificial-intelligence chips.
2. In the general-news arena, there have been significant scientific advances this August, including two human trials of mRNA technology raising hopes of an effective HIV vaccine.

Read also: