California passes redistricting plan to boost Democrats in US HouseS&P index closes lower for the 5th consecutive day.US considers plan to reallocate $2B in the chips act funding for critical materials:Crude oil settled at $63.52Fed chair candidate Lindsey: The facts have changed since the recent labor data.Freddie Mac 30 year average mortgage rate 6.58% unchanged from the prior weekDOJ: Calls on Fed chair Powell to remove Fed Gov. CookNavorro: See's doubling of India tariffs taking place on August 27Putin's wish list: Donbas, no NATO, and no western troopsFed's Hammack: Both sides of the Fed's mandate are under pressureFed Schmid (voter/hawk): Risk of inflation are higher relative to job situationUS existing home sales for July 4.01M vs expectations of 3.92 MUS S&P Global Manufacturing PMI 53.3 versus 49.5 estimateTrump: Ukraine should have invaded RussiaCanada PPI MoM for August 0.7% vs 0.3% estimateUS initial jobs claims 235K vs 225K estimatePhiladelphia Fed Business index for August -0.3 vs 7.0 expectedThe ups and downs continue in currency markets as all eyes are on the Fed chair tomorrowinvestingLive European markets wrap: PMI beats; dollar steady as risk remains cautiousThe US dollar moved higher today after stronger-than-expected data. More specifically, the S&P Global manufacturing and services indices were higher than expectations. Also existing home sales showed a surprise rebound. In addition, concerns about the Fed Powell's speech tomorrow at 10 AM (more hawkish) gave the dollar buyers some confidence.Looking at the dollars gains versus the major currencies shows:EUR +0.39%JPY +0.71%GBP +0.36%CHF +0.57%CAD +0.27%AUD +0.22% NZD +0.9%With Fed officials gathering in Jackson Hole, there were some comments. Kansas City Fed President Jeffrey Schmid (Yahoo Finance interview and host of the Jackson Hole Summit) emphasized a hawkish stance, saying there is no rush to cut rates with inflation still elevated and the labor market holding firm. He noted that inflation is “closer to 3% than 2%,” stressing the difficulty of the “last mile” in bringing it down and warning that cutting rates prematurely could worsen inflation expectations. Schmid said he wants “very definitive data” before changing policy, adding that current rates (4.25%–4.5%) are not meaningfully restricting the economy. He also pointed to optimism among business contacts despite softer jobs data. Earlier today who, Atlanta Fed President Raphael Bostic suggested immigration changes may have lifted the sustainable monthly job growth rate closer to 50K, meaning the recent 3-month average of 35K is weaker than needed but not as alarming as previously thought.Also speaking, Cleveland Fed President Beth Hammack (2026 voter) stressed that both sides of the Fed’s mandate are under pressure, with inflation still too high and labor supply tightening. She said it is important to maintain modestly restrictive policy to bring inflation down, noting that the full impact of tariffs will not be felt until next year. Hammack highlighted that inflation has been trending in the wrong direction and remains her biggest concern, adding that if the meeting were held tomorrow, she would see no case for a rate cut. She emphasized entering each meeting with an open mind given incoming data, but underscored that the Fed must stay laser-focused on inflation, as there are no signs of a notable downturn and “no need for stimulative policy.”In economic data today, US existing home sales for July rose to 4.01M vs 3.92M expected, up 2.0% m/m after a 2.7% decline in June. Inventories edged down to 4.6 months from 4.7, though supply is up 15.7% y/y. The median price climbed to $422.4K (+0.2% y/y), marking the 25th consecutive year-over-year increase. By segment, single-family sales rose 2.0% m/m (median price $428.5K, +0.3% y/y) while condo/co-op sales gained 2.8% m/m (median $362.6K, -1.2% y/y). Regionally, the Northeast led with +8.7% m/m, the Midwest slipped -1.1% m/m, while the South and West posted moderate gains. Homes stayed on the market a median of 28 days, with first-time buyers down to 28%, while cash sales (31%) and investor activity (20%) increased.Also released today, the S&P Global PMI report surprised to the upside with manufacturing at 53.3 vs 49.5 expected, services at 55.4 vs 54.2, and the composite at 55.4, an eight-month high. The survey highlighted robust demand, rising backlogs, and strong hiring, but also warned of inflation pressures at a three-year high as tariff-driven cost increases were passed through to customers. The data point to the economy running at roughly a 2.5% annualized pace in Q3, stronger than the 1.3% average in H1, reinforcing a more hawkish policy bias even as markets still price a likely September cut.Weekly initial jobless claims did show some weakness in employment. The data showed a rise of 11K in the current week to 235K vs 225K expected (prior 224K), with the 4-week average rising to 226.25K. Continuing claims also ticked up to 1.972M vs 1.960M expected (prior 1.953M). The claims data, used in the BLS September payrolls survey, show a modest uptick in filings compared with a month ago, hinting at some employment cooling. However, officials continue to highlight that immigration-driven shifts in labor supply are influencing the balance of worker demand and availability.Finally, the Philadelphia Fed manufacturing index came in at -0.3 vs 7.0 expected (prior 15.9). While current activity softened, inflation components were firmer, with prices paid rising to 66.8 vs 58.8 and prices received up to 36.1 vs 34.8 (those are concerns), both well above long-run averages. The survey also signaled expectations for continued growth over the next six months despite near-term weakness.Fed Powell will speak at 10 AM ET. Markets expect that he will be focused on data dependency, and indeed the September data will be key with employment and inflation data. However, I would not expect that the Fed chair will suddenly become dovish and supportive of the cut right now. Maybe in September after the data but not now. US stocks closed lower with the S&P down for the fifth consecutive day:S&P 500: -0.40% to 6,370.16, 5th straight decline.NASDAQ: -0.34% to 21,100.31, down 4 of the last 5 sessions.Dow: -0.34% (-152.81) to ~34,475.50.Russell 2000: +0.21% to 2,274.09 (small caps eked out a gain).In the US debt market, yields moved higher:2-year yield 3.791%, +4 point basis points5 year yield 3.855%, +4.5 basis points10 year yield 4.327%, +3.2 basis points30 year yield 4.920%, +1.6 basis points This article was written by Greg Michalowski at investinglive.com.