|
|
|
|
|
|
|
|
Powell Named as Interim Fed Leader Pending Swearing-In of Warsh
|
|
|
- The Federal Reserve said outgoing Chair Jerome Powell will serve as acting leader until Kevin Warsh is sworn in.
- Kevin Warsh was confirmed by the Senate for a four-year term as the new chair.
- Two Fed governors disagreed with the interim arrangement’s mechanics, wanting a time-limited designation and renewal vote.
|
|
|
The Economy Kevin Warsh Is Inheriting Is Not the One He Wanted
|
|
|
- Kevin Warsh, the new Fed chair nominee, faces challenges in achieving his goals of lower interest rates and a smaller balance sheet.
- Rising inflation, fueled by the Iran war, and a stabilizing job market undercut the case for Fed rate cuts.
- Shrinking the Fed’s $6.7 trillion balance sheet is a delicate, slow-moving project, with past attempts causing market anxiety.
|
|
China’s Economy Unexpectedly Weakens as Iran War Fallout Mounts
|
|
|
- China’s economic momentum broadly slowed in April, with consumer spending, industrial output, investment, and real estate showing deterioration.
- China’s export sector maintained strength, with 14% year-over-year growth in April, creating lopsided economic expansion.
- The real-estate sector continued to drag on sentiment, with property investment dropping 14% in the January-to-April period.
|
|
The World Can’t Get Enough U.S. Energy, Keeping Prices High for Americans
|
|
|
- U.S. energy exports are surging, depleting domestic stocks and driving up fuel prices for American consumers.
- The Trump administration’s successful efforts to contain prices and a U.S. surplus prompted overseas buyers to purchase huge volumes.
- The U.S. shipped 14.2 million barrels of crude and products daily late last month, roughly equivalent to one of seven barrels consumed globally in ordinary times.
.
|
|
Swiss Economy Expands Again
|
|
|
- Switzerland’s GDP grew 0.5% in Q1 2026, following a 0.2% expansion in Q4 2025, but the Iran war threatens its recovery.
- The KOF Swiss Economic Institute warned rising energy prices led firms to cut investment, making watch, machinery, and electronics industries vulnerable.
- KOF forecast 1.0% real GDP growth for 2026 and 1.7% for 2027, excluding major sporting events, under a baseline scenario.
|
|
|
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.
|
|
|
|
Access WSJ.com and our mobile apps.
Subscribe
|
|
|
