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Trump Will Host Swearing-In Ceremony for New Fed Chair Warsh
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- President Trump will host an unusual White House swearing-in ceremony on Friday for incoming Federal Reserve Chair Kevin Warsh.
- Outgoing Chair Jerome Powell will remain as acting leader until Warsh, confirmed to a four-year term, is sworn in.
- The last new Fed chair sworn in at the White House was Alan Greenspan in 1987, with more recent ceremonies held at the Fed.
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Japan’s Economy Accelerated in First Quarter, Backing Case for Rate Hikes
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- Japan’s economy grew 0.5% in Q1 2026, supporting a Bank of Japan rate hike to 1.0% from 0.75% in June amid inflation.
- The growth was driven by export recovery and government spending, though domestic demand remained gradual and fragile.
- Prime Minister Sanae Takaichi is considering a supplementary budget and energy subsidies, fueling fiscal concerns as bond yields rise.
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U.K. Unemployment Inches Higher
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- The U.K.’s unemployment rate rose to 5.0% in the three months through March, up from 4.9%, as the Iran war weighs on the economy.
- Annual wage growth, excluding bonuses, decreased to 3.4% from 3.6%, while April payrolls fell by 100,000.
- A BDO survey found 30% of midsize U.K. firms consider hiring freezes due to Iran war-tied energy costs.
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Australia’s Central Bank Could Hold Rates as It Weighs Iran Impact
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- The Reserve Bank of Australia raised its official cash rate to 4.35%, its third straight increase, to dampen spending and assess the Iran conflict’s impact.
- Board members judged the prior 4.10% cash rate was less restrictive due to inflation expectations, voting 8-1 for the increase.
- Strong household spending, up 1.6% in March, and soaring fuel prices underpinned the decision to tighten policy further.
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Eurozone Trade Surplus Narrowed in March
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- The eurozone’s seasonally adjusted trade surplus narrowed in March, likely reflecting increased imported energy costs due to the Middle East conflict.
- The seasonally adjusted trade balance was 3.5 billion euros in March, a decrease from 6.5 billion euros in February.
- The non-adjusted trade surplus fell to 7.8 billion euros in March, driven by reductions in chemicals and machinery surpluses.
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U.S. Home Builder Sentiment Improved in May But Affordability Challenges Persist
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- U.S. home builder confidence improved to 37 in May from 34 in April, but remains negative due to high mortgage rates and the war in Iran.
- Thirty-two percent of builders cut prices in May, with an average 6% reduction, as 61% used sales incentives.
- All three major HMI indices posted gains in May, and efforts to modify the 21st Century ROAD to Housing Act could help.
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About Us
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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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