Ahmet Bedirhan Arvas 
Kevin Hassett, former Chairman of the Council of Economic Advisers during the Trump era, stated that the US government may consider taking stakes in companies. In a statement on CNBC, he noted that the approximately $9 billion Chips Act incentive provided to Intel could serve as an example if converted into equity. Hassett emphasized that this approach could be evaluated as a way to create a “sovereign wealth fund” for strategic sectors, but underlined that the government would not take over management or grant voting rights.
This statement is interpreted as a significant signal that the government may move beyond support provided through tax obligations and aim for returns through investments.
Powell Opens the Door to a Rate Cut!
Federal Reserve Chairman Jerome Powell delivered new assessments of the economy at the Jackson Hole meeting of economists. Highlighting the risks in a weakening labor market, he suggested that a rate cut could be considered; however, he also pointed out that inflation still has the potential to rise.
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Following these developments, markets around the world experienced volatility:
- Barclays and BNP Paribas began forecasting that the Fed will implement a 25 basis point rate cut in September 2025. They also noted that two separate cuts could take place within the year.
- Stock markets reflected a positive mood. The S&P 500, Dow Jones, and Nasdaq indices rose; bond yields declined. Small-cap stocks particularly stood out.
- Market probability rose to 87–90%, meaning the September rate cut has become largely “priced in.”
In his speech, Powell strongly emphasized that the Fed’s decisions would be entirely data-driven and that it would maintain its independence.
| Expectations and Developments | Details |
|---|---|
| Treasury policy | Through equity-based returns and an investment approach, the government may intervene in strategic sectors. |
| Monetary policy | The door to a rate cut has been opened; a September cut and possibly a second cut within the year are highly likely. |
| Market reaction | Stocks rose rapidly. Bond yields fell, and the US dollar weakened. |
| Data to watch | The September 5 jobs report and upcoming inflation data will be decisive for the rate decision. |
Kevin Hassett’s statement that the government may take stakes in companies signals a new era in economic policy that is centralized and investment-oriented. Meanwhile, Jerome Powell appears ready to take steps toward flexibility in interest rates while remaining committed to the Fed’s independence and data-driven decision-making.
When these two developments are evaluated together, it becomes clear that a new search for balance between public policy and monetary policy is underway. Upcoming economic data in the coming weeks will reveal this balance more clearly.
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