Fed's Powell Jackson Hole Speech, Meta AI Hires, Nvidia Chip Halt | Bloomberg Daybreak

Powell's Jackson Hole Address and Monetary Policy

• 🎯 Fed Chair Jay Powell is set to deliver a key speech at Jackson Hole, with markets anticipating insights into the future policy path.
• ⚠️ Unlike last year, Powell is not expected to signal an imminent rate cut, but rather discuss the slowing economy and persistent inflation.
• 📊 The Fed prefers to wait for more data, including the next employment and CPI reports, before deciding on the best course of action.
• 📈 The interest rate market currently shows a 70% chance of a quarter-point cut in September and about 50 basis points of easing for the year.
• 💡 Former Dallas Fed President Robert Kaplan suggests patience is needed if the labor market strengthens, but a weakening market might push the Fed towards a September adjustment, though not the start of a cycle.

Federal Housing Finance Agency and Fed Governor Cook

• ⚖️ Federal Housing Finance Agency Director Bill PY will make a statement regarding new evidence against Fed Governor Lisa Cook, following a DOJ recommendation to remove her due to alleged mortgage fraud.
• 🚫 Governor Cook stated she will not be bullied into stepping down and takes allegations about her financial history seriously.

US Chip Industry and AI Developments

• 🤝 Talks are ongoing for the White House to take a 10% stake in Intel, with a focus on shoring up US chip manufacturing.
• 🚫 Nvidia has reportedly instructed suppliers to halt production of its H20 AI chip for the Chinese market, following Beijing's request to avoid using Nvidia chips.
• 💬 Nvidia CEO Jensen Huang clarified that the H20 chip has no security backdoors and that the company has received US government licenses for export to China.
• ☁️ Meta Platforms has agreed to a significant cloud computing deal with Google, committing at least $10 billion over 6 years to utilize Google's servers and storage for AI infrastructure.
• 🧑‍💻 Meta is also hiring another key Apple AI executive, Frank Chu, who led Apple's AI teams focused on cloud infrastructure, joining Meta's Super Intelligence Labs.
• 💰 Elon Musk reportedly attempted to enlist Meta CEO Mark Zuckerberg in his bid for OpenAI earlier this year, though neither participated in the $97 billion offer.

Global and Domestic News Briefs

• 🌍 China accuses the US of threatening world peace ahead of the Shanghai Cooperation Organization summit, which it is hosting.
• 🌊 New Jersey remains under a state of emergency due to Hurricane Aaron, which brought strong winds and coastal flooding.
• ⚖️ One of the Menendez brothers was denied parole for the murder of his parents 36 years ago.
• 🇺🇸 President Trump visited police and National Guard units patrolling Washington D.C., praising the improved security.

Sports Update

• ⛳ Russell Henley leads the Tour Championship Golf with a 9-under 61, holding a two-shot lead over Scotty Sheffler.
• ⚾ The Dodgers and Padres both won their games, with the Dodgers maintaining a one-game lead in the NL West.