International News 26 August 2025
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Buffett’s Berkshire Trims Bank of America Stake Amid Record Cash Build
Warren Buffett, whose net worth exceeds $140 billion, continues to attract global attention with every investment move. Berkshire Hathaway, now the world’s 11th-largest public company with a market cap above $1 trillion (as of Aug. 19, 2025), has recently reduced its long-held position in Bank of America. Berkshire still owns over 605 million shares, worth 8.2% of the bank and nearly 10% of Berkshire’s stock portfolio, but this represents a sharp cut. From July 2024 through Q2 2025, the conglomerate sold roughly 427 million shares—about 41% of its stake. The trimming of Bank of America mirrors Berkshire’s broader strategy of paring down major holdings, including Apple, while amassing a record $344 billion in cash reserves. Though Buffett has not disclosed a single definitive reason, he has hinted at concerns over higher future corporate tax rates, suggesting that realizing gains now may minimize tax burdens later. Investors interpret the move as Berkshire positioning itself defensively, waiting for more attractive opportunities to deploy capital at scale.
Dollar Struggles to Rebound After Powell’s Dovish Signal
The U.S. dollar attempted to recover in early Asian trading on Monday (Aug 25, 2025) after sliding to a four-week low against the euro, pressured by dovish remarks from Federal Reserve Chair Jerome Powell. The greenback edged up 0.2% to $1.1699 per euro but remained near Friday’s trough of $1.1742, its weakest level since late July. Against the pound, the dollar gained 0.1% to $1.3502 after a sharp 0.8% drop in the prior session, while it climbed 0.4% to 147.46 yen, trimming weekend losses. The Australian dollar touched a one-week high at $0.6523 before easing to $0.6484, following a 1.1% jump previously. Powell’s speech at the Jackson Hole Symposium underscored rising risks to the labor market, which investors interpreted as a strong signal for a possible rate cut at the Fed’s September 17 meeting. Market expectations of policy easing have strengthened, with LSEG data showing an 80% probability of a 25-basis-point cut in September and nearly 48 basis points of total reductions by year-end. Analysts note Powell’s dovish tone matched markets’ low expectations, reviving rate-cut bets that had wavered on hotter producer inflation and resilient business activity earlier this month. Traders now await the Fed’s preferred inflation gauge, the PCE deflator, due Wednesday, and the August payrolls report on Friday to gauge the depth of potential easing. Meanwhile, political tensions added pressure, as President Donald Trump escalated attacks on Powell and other Fed officials, fueling concerns over central bank independence.
St. Louis Fed President Signals Caution Ahead of September Meeting
St. Louis Federal Reserve President Alberto Musalem said he needs more data before deciding whether to support an interest rate cut at the Fed’s September 16–17 meeting. Speaking at the Fed’s annual Jackson Hole conference, Musalem noted that inflation remains closer to 3% than the Fed’s 2% target, while risks of labor market weakness have yet to fully materialize. He emphasized that monetary policy is currently consistent with full employment and above-target inflation, but adjustments may be needed if labor risks become more evident. Musalem highlighted that while Fed Chair Jerome Powell recently signaled a possible September rate cut, the emphasis was on “possible,” reflecting policymakers’ caution amid persistent inflation pressures. He acknowledged that tariff-driven inflation is likely temporary but warned that slowing economic growth poses a bigger threat to jobs. Musalem said upcoming data—particularly the August jobs report—will be crucial in shaping his final decision, which he plans to make just days before the September meeting.