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                          Former Fed Chair Powell Delivers a Pointed Warning, Wrapped in Abstraction

Former Federal Reserve Chair Jerome Powell emphasized the central bank’s independence, stating it cannot survive if administrations remove officials over policy disagreements.
Powell’s defense of protections comes as the Supreme Court is expected to rule within weeks on President Trump’s effort to remove Fed governor Lisa Cook.
Powell also signaled vigilance about keeping the selection of reserve bank presidents in the Fed’s hands, not the White House’s.

                          Kevin Warsh Wants the Fed to Think About Inflation Differently

Fed Chairman Kevin Warsh is urging the central bank to pay more attention to alternative measures of inflation when deciding on interest rates.
Warsh believes that “trimmed mean” gauges better filter out one-off price changes from tariffs, AI investment, and geopolitical shocks.
The Dallas Fed’s trimmed mean index shows inflation currently is lower than indicated by the Fed’s preferred gauge, but it failed to register price increases in 2021.

                          OECD Says 60% of Chinese Gains in Market Share Driven by Subsidies

The Organisation for Economic Cooperation and Development reported Chinese businesses received 3-8 times more government subsidies than competitors.
Subsidies drove most of the increase in global market share for Chinese businesses, but did not significantly boost their productivity.
European Commission officials discussed ramping up trade defenses against Chinese rivals amid divisions among EU members.

                          Eurozone Household Inflation Expectations Steady, But at High Level

Eurozone households’ inflation expectations for the next 12 months steadied at 4% in April, much higher than before the Middle East conflict.
Investors expect the European Central Bank to lift its key rate to 2.25% from 2% at its June 11 meeting.
Households expect income growth of 0.8% over the next 12 months, down from 2% in March, indicating lower pay rise anticipation.

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                    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.

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