Is this email difficult to read? View it in a web browser. ›
The Wall Street Journal Pro The Wall Street Journal Pro
Central Banking Pro Central Banking Pro
 
Powell’s Second-to-Last Meeting Previews an Increasingly Divided Fed

  • Federal Reserve officials are expected to hold rates steady this week, but President Trump’s appointees could dissent in favor of cuts.
  • Divisions at the Fed have been building, with Trump’s three appointees breaking from the majority, including two at the last meeting.
  • Former officials warn that a pattern of presidential appointees voting as a bloc could undermine the Fed’s credibility.

 
Bank of Canada to Stand Pat on Rates, Await Fallout From Energy-Price Shock

  • The Bank of Canada is expected to keep its policy interest rate unchanged on Wednesday, as economists weigh economic fallout.
  • Higher energy prices threaten to lift inflation expectations, but labor-market weakness and ebbing core inflation offset this.
  • Most economists expect the Bank of Canada to remain on the sidelines for 2026, citing labor market weakness and low core inflation.
World Bank Embraces Industrial Policy, Abandoning Three Decades of Stigma

  • The World Bank reversed its three-decade stance on industrial policy, now embracing government interventions to shape economies for growth.
  • A new World Bank report found South Korea’s 1970s industrial push made its economy 3% larger annually, contradicting a 1993 assessment.
  • The World Bank advises against “blunt instruments” like sweeping tariffs, noting developing economies often misuse industrial policy.
Christopher Sims, Economist Who Taught the Data to Speak, Dies at 83

  • Christopher Sims, an economist and 2011 Nobel laureate, died last week at 83 from injuries sustained in a 2024 fall.
  • His Nobel-winning work with Thomas Sargent focused on empirical research into cause and effect in the macroeconomy.
  • Sims introduced the vector autoregression (VAR) statistical tool, now a standard part of economists’ tool kit.
Indonesia’s Central Bank Holds Rates as Middle East Risks Cloud Outlook

  • Bank Indonesia kept its benchmark interest rate at 4.75% due to economic risks from the Middle East conflict and surging energy prices.
  • The central bank aims to stabilize the rupiah and keep inflation within its 1.5%-3.5% target amid the Iran conflict.
  • Indonesia considers diversifying crude oil imports from the Middle East, as analysts estimate its oil reserves cover 23 days of demand.
ECB and Bank of England to Stand Pat as Iran Conflict Upends Forecasts

  • European central banks are expected to keep key interest rates unchanged amid economic uncertainty from the U.S. and Israel conflict.
  • The conflict is expected to lead to weaker economic growth and higher inflation in Europe this year.
  • The Bank of England, which had planned to cut borrowing costs, is now expected to hold rates due to the conflict.
Chinese Economy’s Bright Start Masks Uneven Growth as External Risks Loom

  • China’s economy had a solid start to the year, but economists warn momentum may not last amid weak domestic demand and external pressures.
  • Retail sales and industrial production saw a lift in January-February, though consumption was driven by subsidies and not broad-based confidence.
  • Analysts warn the Middle East conflict could weigh on China’s exports and growth, squeezing company profit margins from rising commodity prices.
German Financial Sentiment Plummets on Iran War

  • German investor confidence collapsed in March amid surging energy prices due to the Middle East conflict.
  • The ZEW Indicator’s minus 0.5 reading in March was the first negative result since April last year, hitting energy-intensive industries.
  • Expectations for European Central Bank rate hikes increased since Feb. 28, contributing to declining sentiment in the construction sector.
U.S. Home Builder Sentiment Inches Higher But Affordability Concerns Persist

  • U.S. home builder confidence rose slightly in March, with the NAHB/Wells Fargo Housing Market Index reaching 38 from 37 in February.
  • Builders continued to face elevated land, labor, and construction costs, leading 37% to cut prices and 64% to offer sales incentives.
  • Uncertainty from the Iran conflict and oil prices, along with downpayment hurdles, remain headwinds for the housing market.
New York Manufacturing Activity Contracts in March

  • Factory activity in New York state contracted in March, as the Federal Reserve Bank of New York’s manufacturing index unexpectedly fell to minus 0.2.
  • The pace of input price increases declined significantly in March but remained elevated, while selling price increases were little changed.
  • Firms expressed optimism about the next six months, with the future business conditions index at 31.0 and capital spending plans strengthening.
Iran War Hits Europe With an Energy Shock It Can’t Afford to Absorb

  • An energy shock from the Middle East war is set to deliver a punishing economic blow to Europe, which had hoped for growth.
  • Policymakers have limited options for relief due to high government debt and surging borrowing costs across the continent.
  • Rising energy costs threaten deindustrialization, could drive food prices higher and may push Europe into recession.
The Trump Official Ushering Crypto Into the Banking System

  • Jonathan Gould is greenlighting crypto firms like Ripple and Crypto.com to build national trust banks, drawing opposition from traditional banks.
  • Bank lobby groups have raised concerns about a lack of information around what crypto firms want to do with their charters.
  • Trust banks typically don’t take deposits or make loans, and instead offer a more limited range of services often revolving around the safekeeping of various assets.
Bank of America Agrees to Settle Lawsuit Over Jeffrey Epstein Ties, U.S. Court Says

  • Bank of America agreed to settle in principle a lawsuit alleging it maintained a relationship with Jeffrey Epstein and failed to report suspicious activities until after his death.
  • The lawsuit, filed on behalf of a woman who said she was abused by Epstein, claimed she opened an account at the bank in 2013 at the direction of his accountant.
  • Terms of the settlement were not disclosed, and Judge Jed Rakoff must approve the agreement.
Trump Targets Housing Affordability in New Executive Orders

  • President Trump signed executive orders on Friday to ease mortgage rules for community banks and boost new-home construction.
  • One order directed bank regulators to reform capital and liquidity rules and modernize appraisal regulations.
  • Another order called on federal agencies to incentivize state and local governments to cut costly mandates and speed up permits.
SEC Dismisses Fraud Case Against Crypto Billionaire Justin Sun

  • The Securities and Exchange Commission moved to dismiss a civil fraud lawsuit against crypto billionaire Justin Sun.
  • A company affiliated with Sun agreed to pay a $10 million fine to resolve allegations of market manipulation for a crypto asset.
  • Sun became a major investor in President Trump’s crypto projects as he pursued leniency from U.S. law enforcers.
 

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.
 
Desktop, tablet and mobile. Desktop, tablet and mobile. Access WSJ‌.com and our mobile apps. Subscribe