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Fed Nominee Kevin Warsh Details More Than $100 Million in Financial Holdings
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- Kevin Warsh, President Trump’s choice for Federal Reserve chair, disclosed over $100 million in financial interests, including stakes in SpaceX.
- Senate Banking Committee Chairman Tim Scott announced a confirmation hearing for Warsh next week, amid a criminal probe of Jerome Powell.
- Warsh’s extensive financial holdings appear to exceed predecessors; he pledged to divest assets.
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Jeanine Pirro’s Prosecutors Make Surprise Visit to Fed Headquarters
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- Prosecutors from U.S. Attorney Jeanine Pirro’s office made an unannounced visit to the Federal Reserve’s headquarters renovation site.
- An outside lawyer for the Fed objected, citing a judge’s ruling that the investigation aimed to pressure Chair Jerome Powell.
- The investigation threatens to stall the confirmation of Kevin Warsh, President Trump’s pick to succeed Powell.
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Eurozone Economy Caught Between Baseline and Adverse Scenarios, ECB’s Lagarde Says
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- ECB President Christine Lagarde said the Iran war’s energy-price shock is between the bank’s baseline and adverse scenarios.
- The ECB’s adverse scenario projects 3.5% inflation and 0.6% GDP growth this year, requiring agile, data-dependent monetary policy.
- The IMF downgraded eurozone growth to 1.1% from 1.3% due to surging oil-and-gas prices; Lagarde will complete her mandate.
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BOE’s Greene Sees Wait For Hard Evidence Of Second-Round Effects
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- Bank of England rate setter Megan Greene said the BOE may raise its key interest rate if higher energy costs lead to increased wages and prices.
- Greene emphasized “second-round effects,” where higher energy prices prompt workers to seek bigger pay increases, leading businesses to raise prices.
- Greene noted more slack in the U.K. jobs market and weaker demand than in 2022, suggesting definitive evidence of these effects isn't yet available.
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Producer-Price Index Climbed in March
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- Wholesale inflation reached a three-year high in March, with the 12-month producer-price index rising 4%, the Labor Department said.
- March’s producer-price index increase was driven by an 8.5% rise in energy costs, following an oil shock from the war in Iran.
- Rising inflation presents a new economic challenge for the Federal Reserve and may strain American budgets, shifting rate-cut expectations.
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IMF Warns of Deep Global Downturn if War Is Prolonged
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- The IMF reduced its global growth forecast to 3.1% from 3.3% in January, warning a prolonged Middle East conflict could slash growth to 2%.
- The IMF issued three scenarios; the “adverse” projects 2.6% global growth with $100 oil, and the “severe” projects 2% growth.
- The IMF lowered 2026 growth projections for the Middle East to 1.9%, Europe to 1.1%, and China to 4.4%, but said the U.S. will fare better.
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Bank of Korea Nominee Seen Prioritizing Price Stability
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- Bank of Korea Governor nominee Shin Hyun-song said he would prioritize price stability amid uncertainty from the Middle East conflict.
- The Iran conflict is causing supply disruptions for South Korea, with President Trump ordering a blockade of the Strait of Hormuz.
- The Bank of Korea held its base rate at 2.5% for a seventh straight meeting, which Shin described as appropriate ‘strategic patience’.
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U.S. Economy Remains Resilient in Face of Iran War, Banks Say
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- American households and businesses showed resilience in the first quarter, with three major banks earning a collective $27.53 billion.
- JPMorgan Chase reported a 9% rise in consumer credit card spending and lower delinquency rates on all consumer loans from a year earlier.
- Wells Fargo executives noted rising stress for less affluent consumers and a 25% to 30% increase in fuel spending.
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China’s Export Momentum Slows Amid Iran War
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- China’s export momentum slowed sharply in March, rising 2.5% from a year earlier, signaling global demand is weighed by the Middle East war.
- China’s trade surplus fell to $51 billion in March from $103 billion a year ago, as imports jumped 28% and exports to the U.S. dropped 26%.
- The war in Iran risks China’s export-driven growth model, with higher commodity costs and elevated oil prices potentially damping global demand.
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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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