The European major indices are closing the day mostly higher. The one exception is UK's FTSE 100 which fell after the Bank of England's hawkish cut of 25 basis points. The expectations were for 7-2 split for a cut of 25 basis points. The actual final vote (it took 2 for the first time) was 5-4. The Bank of England has now cut rates from 5.25% to 4.0% in the run to the downside.Apart from the UK, the other major indices closed above and below 1% gainsA summary of the closing levels shows: France's CAC +0.97% German DAX, +1.11%UK's FTSE 100 -0.69%Spain's Ibex +1.06%Italy's FTSE MIB +0.93%.As London/European traders head for the exits, US stock indices are trading mixed. The Dow industrial average and the S&P are now negative after giving up earlier gains. The NASDAQ index is holding onto modest gains.Dow industrial average -325.91 points or -0.74% at 43866. At session highs, the index was up 305 points S&P index -7 points or -0.10% at 6338. At session highs the index was up 44.65 pointsNASDAQ index +88 points or 0.41% at 21256. At session highs the index was up 238.73 points.Russell 2000-15.32 points or -0.69% at 2205.80. At session highs the index was up 21.87 pointsIn the US debt market ahead of the 30-year bond auction at 1 PM, yields are mixed with the shorter end higher in the longer end lower:2-year yield 3.721%, +2.1 basis points5-year yield 3.772%, +1.0 basis points10 year yield 4.226%, -0.5 basis points30 year yield 4.789%, -2.2 basis pointsa circle around other markets currently shows:Crude oil $-0.39 at $63.92Gold up $18.92 at $3387.Silver up $0.36 at $38.17.Bitcoin up $1700 at $116,798.Looking at the US dollar, the greenback is mixed. The biggest mover is the GBPUSD with a gain of 0.54% after the dovish cut from the BOE. The USDJPY, USDCAD, AUDUSD are all little changed at less then 0.10% change. The NZDUSD is up 0.24% and the EURUSD is down -0.17%Atlanta Fed President Raphael Bostic conveyed a cautiously hawkish tone in his latest remarks, reflecting a complex and evolving economic backdrop. He noted that while the fundamentals of the U.S. economy remain solid, the outlook is for continued slowing, accompanied by real uncertainty around the implications for jobs and inflation. He highlighted that businesses are still in a wait-and-see mode on employment, and that stress on lower-income consumers is mounting as excess pandemic savings have been depleted. Although labor market conditions in the Southeast remain resilient, Bostic acknowledged that recent downward revisions to jobs data, particularly in the July report, suggest the labor market may not be as tight as previously thought. This has prompted a reassessment of the Fed’s progress on its employment mandate and raised the question of whether the U.S. is still at full employment.Bostic warned that tariffs could place upward pressure on prices for the next six to twelve months, adding complexity to the Fed’s inflation outlook. He stressed that tariffs can’t be dismissed as transitory, as they are designed to produce structural shifts that could lead to more persistent inflationary effects. He emphasized that the most important question now is whether these price shifts will be one-time or sustained. While businesses are adapting with a variety of pricing strategies, Bostic believes the tariff episode is likely to last longer than expected and will require close monitoring.On policy, Bostic reiterated that he still sees one rate cut this year as appropriate, though he emphasized that much data remains before the Fed’s September meeting. He also noted that federal debt issuance may siphon off liquidity, adding another element the Fed must watch. Despite recent challenges, Bostic expressed hope that price pressures will ease by mid to late 2026. This article was written by Greg Michalowski at investinglive.com.