US stocks have fallen for five days running as traders nervously await a speech from Federal Reserve chairman Jerome Powell.

Central bankers are gathering for an annual summit in Jackson Hole, Wyoming, where Mr Powell could indicate whether interest rates will be cut soon.

The Fed hasn’t reduced the cost of borrowing since December – despite repeated calls from Donald Trump to do so.

By contrast, the European Central Bank has slashed rates four times in 2025, with the Bank of England opting for three cuts so far this year.

Money blog: Top tips for entering US under Trump

The US president has nicknamed the Fed chairman “Too Late” Jerome Powell on social media – and has repeatedly called for his resignation.

But Mr Powell has argued that interest rates can only be lowered when there are clear signs that inflation is returning to its 2% target.

Today will mark his final keynote speech at Jackson Hole before his eight-year tenure at the Federal Reserve ends in May 2026.

Past addresses have been known to move the markets, with reaction often amplified because of lower trading volumes during the summer months.

Figures from the CME FedWatch tool show expectations for a US interest rate cut when policymakers next meet in September are on the decline.

One week ago, the probability of a 0.25 percentage point cut was priced in at 85.4%. But that fell to 82.4% on Thursday – and has dropped further to 73.3% at the time of writing.

It comes as other senior officials within the Federal Reserve, speaking on the sidelines of the three-day summit in Jackson Hole, continued to express caution.

Read more business news:
Major steel producer pushed into compulsory liquidation
London Underground workers to strike for seven days

Beth Hammack, president of the Cleveland Fed, told Yahoo Finance: “With the data I have right now and with the information I have, if the meeting was tomorrow, I would not see a case for reducing interest rates.”

Of particular concern is the impact that Donald Trump’s tariffs are having on inflation – both in terms of costs for businesses, and what consumers ultimately pay.

Just this week, Walmart – the world’s biggest retailer – warned tariffs are squeezing its profit margins and leading to higher prices at the till.

The British-based bank Shawbrook is in talks to buy ThinCats, a lender to medium-sized businesses, in a deal worth about £180m.

Sky News has learnt that the two companies are in exclusive discussions about a deal following an auction of ThinCats conducted by bankers at Fenchurch Advisory Partners.

Sources said the exclusivity period was due to end shortly.

A deal to buy ThinCats would strengthen Shawbrook’s alternative financing capabilities as it prepares for a £2bn flotation on the London Stock Exchange.

Shawbrook’s plans to go public were revealed by Sky News at the start of this year, although the timing of a flotation has been pushed back by persistent market uncertainty.

Shawbrook, which employs close to 1,600 people, has well over 500,000 customers.

Founded in 2011, it was established as a specialist savings and lending institution, providing loans for home improvement projects and weddings, as well as business and real estate lending.

In recent years it has explored a string of sizeable corporate transactions, including mergers with or takeovers of rivals including Metro Bank, Starling Bank and the Co-operative Bank.

BC Partners and Pollen Street own equal stakes in Shawbrook, with its management team also owning a minority.

The bank is run by Marcelino Castrillo, chief executive.

If its pursuit of ThinCats is successful, it will add another leg to its business lending to SMEs.

In the 12 months to 30th June, ThinCats provided £381m of funding to businesses, a modest increase on the previous financial year’s £378m.

The company said that lending to owner-managed businesses had surged, especially following the autumn budget last November.

In total, ThinCats has now lent more than £2bn to businesses across the UK, with assets under management standing at just under £1bn.

ThinCats is run by chief executive Amany Attia, who is also a shareholder in the business.

In 2021, it announced a £160m investment from Wafra Capital Partners, a New York-based investment firm which is affiliated to an arm of the Kuwaiti state.

ThinCats declined to comment, while Shawbrook could not be reached for comment.

Consumer confidence has reached its highest point this year – driven by the Bank of England’s interest rate cuts.

The long-running GfK Consumer Confidence Index shows an improvement in how Britons have felt about their personal finances over the past 12 months, as well as in the year ahead.

August’s overall index score rose by two points to -17. This is the best reading since December, but shows consumers remain cautious in the current economic climate.

Money blog: Top tips for entering US under Trump

GfK’s consumer insights director Neil Bellamy said the improving figures come after the cost of borrowing fell to its lowest level in two years.

He added: “The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment.

“There’s no shortage of speculation, too, about what the autumn budget will bring in terms of tax rises.”

Mr Bellamy went on to warn that many British consumers remain in “wait-and-see mode”, meaning any surprise economic changes could result in a sudden shift in sentiment.

In other developments, a recent survey by the British Retail Consortium suggests 42% of shoppers now expect to spend more on groceries in the next three months.

Read more business news:
Why US stocks have fallen five days in a row
Major steel producer pushed into compulsory liquidation

Some of the country’s biggest retailers have also written to Chancellor Rachel Reeves – warning further tax rises in the budget could affect living standards.

Executives from John Lewis, Tesco, Sainsbury’s, Aldi and Lidl were among the signatories, with Ms Reeves told the recent hike to employer’s national insurance has had a huge impact.

“As retailers, we have done everything we can to shield our customers from the worst inflationary pressures but as they persist, it is becoming more and more challenging for us to absorb the cost pressures we face,” the letter said.

In response, a Treasury spokesperson said the government is “pro-business”, with 380,000 jobs created since Sir Keir Starmer entered Downing Street.

“The tax decisions we took at the budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and giving a wage boost for millions as we deliver on the plan for change,” they added.