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Kansas City’s Schmid Says Federal Reserve Has Work to Do With Inflation

  • Kansas City Fed President Jeff Schmid expressed concerns about inflation on Wednesday, stating the Fed has “work to do.”
  • Schmid was one of three dissenters in the Federal Reserve’s December quarter-point rate cut decision.
  • Schmid commented on Kevin Warsh, President Trump’s pick for the next Fed chair, noting Warsh’s board experience.

 
Trade Remains ‘Challenging’ for Eurozone Amid Volatile Policy, Says ECB’s Lagarde

  • European Central Bank President Christine Lagarde said eurozone exporters face difficulty finding overseas buyers due to changeable U.S. policy.
  • President Trump resorted to a 10% duty on all trading counterparts after the U.S. Supreme Court ruled his country-specific tariffs illegal.
  • European Union exports to the U.S. rose to 554 billion euros last year, but growth slowed as higher tariffs and a stronger euro took effect.
U.S. Should Shift Gears on Economic Policy, International Monetary Fund Says

  • The International Monetary Fund (IMF) proposed an alternative U.S. policy mix to achieve administration goals without negative global repercussions.
  • The IMF suggested replacing tariffs with a destination-based consumption tax and moving to a skills-based immigration system.
  • The IMF urged preserving the Federal Reserve’s autonomy and called for a clear, frontloaded fiscal consolidation plan.
Fed’s Bostic Says People Have Begun to Doubt Fed Independence

  • Atlanta Fed President Raphael Bostic warned that the White House’s rift with the Fed erodes trust in the central bank’s independence.
  • President Trump has pressured Chairman Jerome Powell, tried to fire Governor Lisa Cook, and initiated a criminal probe into Powell.
  • Bostic’s farewell essay stated that legal and rhetorical battles have caused public doubt about the Fed’s independence.
Bank of Japan’s Most Hawkish Member Says Rate Hike Needed Soon

  • Hajime Takata, a Bank of Japan policy board member, said the bank should raise interest rates as its price stability target is almost achieved.
  • Takata, a prominent policy hawk, was the lone dissenter in January, proposing a rate hike to 1.0% instead of holding at 0.75%.
  • He noted a weak yen and Prime Minister Sanae Takaichi’s fiscal policies fuel inflation fears, but U.S. tariff concerns have abated.
Bank of Korea Holds Rates Steady, Lifts Growth Forecast

  • The Bank of Korea kept its benchmark seven-day repurchase rate at 2.50% for a sixth consecutive meeting.
  • The BOK raised its 2026 GDP growth forecast to 2.0% and its 2026 inflation forecast to 2.2%.
  • Strong demand for Korean chip exports and easing inflation supported the decision to hold rates.
Circle Internet’s Quarterly Profit Surges on Stablecoin Demand

  • Circle Internet Group’s fourth-quarter profit jumped to $133.4 million, driven by its stablecoin amid a crypto downturn.
  • The company’s USDC stablecoin ended 2025 with $75.3 billion in circulation, a 72% increase from a year ago.
  • Circle benefits from the Trump administration’s pro-crypto stance but faces a stalled Clarity Act over stablecoin rewards.
World Trade Surged in 2025 Despite Higher Tariffs

  • World trade volume grew 4.4% in 2025, a pickup from 2024, despite U.S. tariffs, with AI-related investment boosting flows.
  • Advanced Asian economies saw exports jump 15.9% in 2025, while China’s overseas sales rose 8.5%, according to CPB data.
  • The U.S. Supreme Court ruled country-specific tariffs illegal, leading President Trump to impose a 10% duty for 150 days.
Decline in War-Risk Premium Is Boost for Central and Eastern Europe, EBRD Says

  • The risk premium for lending to central and eastern European countries has fallen to levels last seen before Russia’s invasion of Ukraine, easing the war’s economic impact, the European Bank for Reconstruction and Development said.
  • The EBRD raised its 2026 growth forecast to 3.6% from 3.4%, citing increased defense spending and demand for artificial-intelligence-related equipment.
  • The EBRD lowered Ukraine’s growth forecast to 2.5% from 5% as the country enters its fifth year of war, citing power shortages and labor constraints.
Eurozone Business Confidence Slips as Trade Risks Continue to Weigh

  • Eurozone firm confidence fell in February, with the Economic Sentiment Indicator dropping to 98.3 amid U.S. policy uncertainties.
  • The U.S. imposed a blanket 10% global tariff after its Supreme Court struck down President Trump’s tariff agenda.
  • Bank lending to eurozone businesses slowed to an annual pace of 2.8% in January, according to the ECB.
Australia’s Sticky Inflation Problem Stokes Speculation of More Rate Hikes to Come

  • Australia’s consumer prices rose 3.8% in January from a year earlier, unchanged from December, fueling rate hike speculation.
  • The Reserve Bank of Australia is expected to repeat February’s interest rate increase in coming months.
  • Housing was the largest contributor to annual inflation in January, followed by food and nonalcoholic beverages.
Consumer Confidence Improved In February

  • Consumer confidence rose to 91.2 in February from 89 in January, according to Conference Board’s monthly survey.
  • Consumers remained concerned about high prices and inflation, according to Conference Board and University of Michigan surveys.
  • The personal-consumption expenditures price index, the Fed’s preferred inflation measure, rose 0.4% in December.
Kalshi Fines Former Gubernatorial Candidate, MrBeast Employee on Prediction Wagers

  • Prediction-market platform Kalshi publicly disclosed its first disciplinary actions, fining a candidate and a MrBeast editor.
  • Kalshi fined former California gubernatorial candidate Kyle Langford $2,246.36 and banned him for five years.
  • Kalshi fined MrBeast video editor Artem Kaptur $20,397.58 and suspended his account for two years.
Trump Administration Considers Requiring Banks to Collect Citizenship Information

  • The Trump administration is weighing a possible executive order or other action to require banks to collect citizenship information from customers.
  • The action, primarily under Treasury Department review, would require banks to ask for new documents from both new and existing customers.
  • The administration previously used financial laws to target a Minnesota welfare-fraud scandal, leading to a FinCEN order in January.
Meet the Trump Official Fighting for Prediction Markets

  • CFTC Chair Michael Selig is coming out in defense of prediction markets, intervening in a fight to stop Nevada from blocking Kalshi’s operations.
  • Selig, sworn in as one of the youngest CFTC chairs, is a derivatives lawyer who took an interest in cryptocurrency early in his career.
  • In law school, Selig interned for then-CFTC commissioner J. Christopher Giancarlo, dubbed ‘Crypto Dad’ by the industry.
Elizabeth Warren Has Questions About the Shake-Up Inside the Fed’s Banking Regulator

  • Sen. Elizabeth Warren and other Democrats demand Federal Reserve information on banking supervision changes, citing a Wall Street Journal report.
  • Michelle Bowman, the Fed’s vice chair for supervision, is reshaping bank scrutiny, leading to staff cuts and examiners sidelined by bank complaints.
  • Sen. Warren, Sen. Richard Blumenthal, and Sen. Bernie Sanders asked Bowman about hiring Starling Trust Sciences to review Silicon Valley Bank’s 2023 failure.
U.K. Regulator Weighs Rule Change to Attract Chinese Listings

  • The U.K.’s audit regulator is considering changing accounting rules to encourage Chinese companies to list in London.
  • The Financial Reporting Council will consult on allowing Chinese accounting rules for global depository receipts for a limited time.
  • The proposed change is part of a U.K. government push to address barriers discouraging Chinese issuers from choosing the U.K.
 

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