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Fed’s Bostic Says People Have Begun to Doubt Fed Independence
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Atlanta Fed President Raphael Bostic said Wednesday that the rift between the Federal Reserve and the White House has begun to erode trust in the central bank’s apolitical standing, one of the most direct warnings yet from a top monetary-policy official about the consequences of President Trump’s aggressive stance toward the Fed. Meanwhile, Kansas City Fed President Jeff Schmid, one of the three dissenters in the Fed's December quarter-point rate cut decision, continued to express his concerns about inflation. Elsewhere, Bank of Japan policy board member Hajime Takata said that with deflation now firmly in the rearview mirror, the path is clear for the Japanese central bank to raise interest rates sooner rather than later. And South Korea’s central bank held its policy rate on hold for a sixth straight meeting and raised its growth and inflation forecasts for this
year,
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Fed’s Bostic Says People Have Begun to Doubt Fed Independence
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Photo: Desiree Rios/Bloomberg News
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Writing in a farewell essay ahead of his scheduled retirement at the end of February, Atlanta Fed President Raphael Bostic said his colleagues in the Federal Reserve system remain committed to insulating their work from politics.
“But my travels over the past several months have made clear that the legal and rhetorical battles raging around the central bank right now have caused people across a wide cross-section of our population to begin to doubt the Fed’s independence,” Bostic wrote. “This is a major concern.”
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Kansas City’s Schmid Says Fed Has Work to Do With Inflation
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“I think we’re in a pretty good place for employment, even though, structurally, some things are changing in the labor market,” he added.
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Bank of Japan’s Most Hawkish Member Says Rate Hike Needed Soon
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Bank of Japan policy board member Hajime Takata said in a speech Thursday: “I believe the bank should make a further gear shift, and engage in communication that assumes that the price stability target is almost achieved.”
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He also flagged the risk that an external shock could drive Japan’s inflation up more than expected. Takata is seen as the BOJ board’s most prominent policy hawk. In January, he was the lone dissenter in an 8-1 decision to hold the policy rate at 0.75%, instead proposing a hike to 1.0%.
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Bank of Korea Holds Rates Steady, Lifts Growth Forecast
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The Bank of Korea on Thursday left its benchmark seven-day repurchase rate at 2.50%. Twenty-one of 25 analysts polled by The Wall Street Journal had expected the decision. Most expect the bank to hold rates steady this year, with some projecting possible increases in 2027.
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Trade Remains ‘Challenging’ for Eurozone, ECB’s Lagarde Says
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The Math Behind Trump’s Eye-Catching Economic Ideas
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In a record-length State of the Union address, President Trump threw out a string of eye-catching economic ideas. His proposals and promises come as American voters are increasingly frustrated with the economy. About 56% of Americans disapprove of his handling of it, compared with about 40% who approve, according to an average of polls collected by the nonpartisan Cook Political Report. Here’s a look at the math behind some of Trump’s economic notions
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Americans Are Leaving the U.S. in Record Numbers
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Last year the U.S. experienced something that hasn’t definitively occurred since the Great Depression: More people moved out than moved in. America’s own citizens are leaving in record numbers, replanting themselves and their families in lands they find more affordable and safe.
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Greer: 15% Tariff May Only Apply to Some Countries
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President Trump may increase his 10% global tariff to 15% for only some nations, his trade chief said, adding to the confusion over an increase that was announced last weekend but has yet to materialize.
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Shipping Industry Sends Strong Consumer Demand Signal For 2026
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Major U.S. importers are facing off against the world’s largest ocean carriers in an early gut check for trade in 2026. Retailers are expecting favorable deals as they kick off talks next month for ocean shipping contracts that link factories in Asia to warehouses in America.
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U.S. Should Shift Gears on Economic Policy, IMF Says
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8:30 a.m.: Unemployment Insurance Weekly Claims Report - Initial Claims
10 a.m.: Federal Reserve Vice Chair for Supervision Michelle Bowman appears before senate committee hearing
11 a.m.: Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing
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8:30 a.m.: PPI
9:45 a.m.: Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
3 p.m.: Agricultural Prices
3:30 p.m.: U.S. President Donald Trump delivers remarks at The Port of Corpus Christi
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Corporate Bonds Below the Highest Ratings Are in 'Good Shape'
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Corporate bonds are generally pricey, but the lower end of investment-grade and the upper tier of high yield still hold value, SanJac Alpha's Andrew Wells tells WSJ. In the high-yield space, BB and B-rated bonds are "actually in real good shape because anything that looks risky has kind of been pushed out into private credit," he says. Debt accumulation to fund AI also raises concerns, so he is avoiding tech exposure. "It's the ones that have taken on just massive amounts of debt like Oracle," he says. "It certainly shows signs of an overbuild or an oversupply [of bonds] coming." — Paulo Trevisani
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Canadian Prime Minister Mark Carney heads to the Indo-Pacific region this week, starting with a visit to India where he aims to accelerate efforts to deepen commercial ties with the country after years of diplomatic distress.
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Confidence among firms in the eurozone slipped in February amid fresh uncertainties surrounding Europe’s political and economic relationship with the U.S.
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The risk premium demanded by investors to lend to countries in central and eastern Europe has fallen back to levels last seen before Russia’s full scale invasion of Ukraine, easing the war’s negative impact on the region’s economies, the European Bank for Reconstruction and Development said Thursday.
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WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ’s global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to vicky.huang@wsj.com.
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