Is this email difficult to read? View it in a web browser. ›
The Wall Street Journal Pro The Wall Street Journal Pro
Central Banking Pro Central Banking Pro
 
Trump Wants Powell Out. Powell Is Digging In.

  • Federal Reserve Chair Jerome Powell signaled he intends to remain on the board until a Justice Department investigation into him concludes.
  • Powell said he would continue as “chair pro tempore” if a successor is not confirmed by May 15, delaying President Trump’s ability to reshape the Fed.
  • The Justice Department probe, which a judge ruled involved improper subpoenas, has stalled the Senate confirmation of President Trump’s nominee, Kevin Warsh.

 
Bank of Japan Holds Steady as Middle East Tensions Raise Uncertainty

  • The Bank of Japan maintained its policy rate at 0.75% on Thursday, extending a pause since December.
  • The BOJ cited an uncertain backdrop of Middle East conflict and volatile energy markets for its decision.
  • The BOJ reaffirmed that further rate hikes are possible if economic activity and prices align with its projections.
Swiss National Bank Holds Key Rate as Franc Appreciation Concerns Persist

  • The Swiss National Bank kept its key interest rate at 0% and signaled willingness to intervene in the foreign-exchange market.
  • The SNB aims to counter the franc’s appreciation, which weighs on inflation and hurts exports, especially after the Iran war.
  • The SNB now projects annual inflation to average 0.5% in 2026 and 2027, up from previous forecasts.
Fed Holds Rates Steady as Iran War Clouds Outlook

  • The Federal Reserve held interest rates steady, but higher energy prices from the Iran war threaten to prolong its inflation fight.
  • Fed Chair Jerome Powell expressed caution about rate cuts, despite 12 of 19 officials projecting at least one cut this year.
  • Underlying inflation accelerated to 3.1% in January, and the economy lost 92,000 jobs in February.
Sweden’s Central Bank Holds Key Rate as Middle East Conflict Raises Uncertainty

  • Sweden’s Riksbank held its key policy rate at 1.75% but remains vigilant for Middle East conflict impacts on inflation.
  • The central bank has held rates steady for four consecutive meetings amid falling inflation and an improving domestic economy.
  • The Riksbank expects the Middle East conflict to damp near-term growth and lift inflation due to higher energy prices.
Taiwan Central Bank Holds Rates Again, Raises Inflation Forecast

  • Taiwan’s central bank kept interest rates unchanged for an eighth meeting but raised its 2026 inflation outlook to 1.80% from 1.63%, citing Middle East conflict uncertainty.
  • The Central Bank of the Republic of China (Taiwan) maintained its benchmark discount rate at 2.000%, aligning with economists’ forecasts.
  • Taiwan’s economy grew 8.68% in 2025, its fastest pace in 15 years, driven by global demand for chips and artificial intelligence.
Economists Don’t See a Recession Unless Oil Hits $138—and Stays There for Weeks

  • The Midest war has caused sharply higher crude prices, though economists still largely doubt a U.S. recession.
  • Economists increased the 12-month recession probability to 32% and estimated that an average of $138 a barrel oil is needed for it to exceed 50%.
  • Economists raised their December 2026 consumer-price index forecast to 2.9% and reduced expectations for Federal Reserve rate cuts.
U.K. Jobless Rate Remains Near Five-Year High

  • U.K. unemployment remained at 5.2% in the three months through January, its highest level in nearly five years.
  • Annual wage growth, excluding bonuses, slowed to 3.8%, marking the slowest rate in more than five years.
  • Geopolitical uncertainty from the Middle East conflict threatens to push U.K. jobless rates and inflation higher.
New Zealand’s Economic Recovery Falters as Fresh Threats Emerge

  • New Zealand’s economy grew 0.2% in the fourth quarter, with economists warning of new threats from the Middle East war.
  • The 0.2% fourth-quarter growth fell short of the Reserve Bank of New Zealand’s 0.5% expectation, likely halting rate increases.
  • GDP per capita was flat in the fourth quarter, as population growth matched the overall increase in GDP.
EU Chief Von Der Leyen to Visit Australia as Trade Talks Progress

  • European Commission President Ursula von der Leyen plans to visit Australia next week to progress trade deal talks.
  • The EU executive seeks trade agreements with other countries amid volatile relations with the U.S. under President Trump.
  • The EU and Australia reopened free trade agreement discussions last year after talks stalled in 2023.
Stubborn Wholesale Inflation Persisted in February

  • Wholesale inflation, measured by the producer-price index, rose 0.7% in February, reaching a 3.4% 12-month rate.
  • The data adds evidence of persistent price increases and may fuel anxiety about rising costs, especially with the Iran war.
  • Stubbornly high PCE readings have put the brakes on Fed rate cuts, with traders pulling back on bets for cuts this year.
 

About Us

WSJ Pro Central Banking brings you news and analysis from a global team of reporters and editors at The Wall Street Journal and Dow Jones Newswires. Send your tips, suggestions and feedback to service@dowjones.com. An artificial-intelligence tool created these summaries, which are based on the text of the article and checked by an editor. Read more about how we use artificial intelligence in our journalism.
 
Desktop, tablet and mobile. Desktop, tablet and mobile. Access WSJ‌.com and our mobile apps. Subscribe