FT News Briefing A divided Bank of England
51 snips
Aug 8, 2025 Donald Trump nominates Stephen Miran to the Federal Reserve Board, stirring interest amidst economic shifts. The Bank of England cuts rates after a divided vote, reflecting internal conflicts over rising inflation and a struggling economy. Meanwhile, European arms factories are ramping up production in response to geopolitical tensions. In tech news, Trump threatens hefty tariffs on semiconductors, specifically targeting chips but leaving Apple exempt, highlighting the complexities of U.S. manufacturing and global supply chains.
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BOE Split Vote Shows Uncertainty
- The Bank of England's close split vote reflects real uncertainty about how to balance inflation and economic weakness.
- Supply shocks complicate monetary policy, causing reasonable disagreements about whether to cut or hold rates.
UK Stagflation Challenges BOE
- UK faces stagflation with inflation above target and weak growth.
- BOE members are divided over whether inflation is temporary and if current rates are restrictive enough.
US Tariffs Target Non-Investors
- Companies investing heavily in US chip manufacturing gain tariff exemptions as incentives.
- Firms without such investments face uncertainty and potential tariff risks.
