ECB chief Christine Lagarde insists she’ll complete her term, despite reports of an early exit to influence the French election. DW asks whether Europe must better shield its institutions from a rising far right.Is Christine Lagarde leaving the ECB early?Officially, European Central Bank President Christine Lagarde is not quitting her job early as head of the 21-member eurozone's central bank.However, the Financial Times reported on Wednesday that Lagarde has told people close to her that she is considering ...

Core Insights - Federal Reserve Chair nominee Kevin Worsh has a voting record that shows he never dissented during his tenure as a Fed Governor, which raises questions about his independence and decision-making style [1][3]. Group 1: Voting Record and Policy Stance - Worsh's voting history from February 2006 to March 2011 indicates he consistently aligned with the FOMC consensus, including three rate hikes upon joining in 2006, followed by steady rates and cuts during the financial crisis [3]. - In April 2008, Worsh expressed concerns about inflation while voting for a 25 basis point rate cut, warning that further cuts could signal a dangerous tolerance for inflation [4]. - Worsh emphasized the importance of central bank independence and maintaining inflation expectations, arguing against succumbing to political pressures [5]. Group 2: Current Perspectives and Future Implications - Recently, Worsh has argued that interest rates could be lower due to a productivity boom from AI, which he believes could help reduce inflation [6]. - The confirmation process for Worsh as Fed Chair is ongoing, with implications for current Fed Chair Jay Powell's future role as his term expires [8].

The chairman-designate on where the central bank has gone wrong and what independence means. ...

The historic collapse in gold and silver prices on Friday sparked a brutal selloff across mining stocks, as markets aggressively unwound one of January's most crowded trades.As of 2:00 p.m. in New York, silver was down 27% to $84 an ounce, while gold slid 9.5% to $4,861. Both moves marked the worst single-day declines since 1980 for the two metals.The selloff was just as violent in exchange-traded products tracking precious metals performance. The brutal collapse reflects a sharp repricing of monetary risk ...

President Donald Trump on Friday nominated former Federal Reserve governor Kevin Warsh to serve as the next chair of the US central bank, a pick investors broadly view as experienced and credible but potentially less dovish than markets had expected. Warsh, who served on the Fed’s Board of Governors from 2006 to 2011 during the global financial crisis, is known as a critic of the central bank’s heavy reliance on forward guidance and its expanded balance sheet, as well as a defender of central bank independe ...

Core Viewpoint - Jerome Powell, the Federal Reserve chair, has two remaining opportunities to adjust interest rates before his term ends, but he may not need to make any changes due to a positive economic outlook [1][2]. Economic Outlook - The Federal Reserve decided to maintain borrowing costs, with Powell noting a "clear improvement" in the US economic outlook and signs of stabilization in the job market [2][4]. - The Federal Open Market Committee voted 10-2 to keep the benchmark federal funds rate in a range of 3.5%-3.75%, with dissenting votes advocating for a quarter-point reduction [4]. - Recent data indicates accelerating growth, cooling inflation, and steady employment, contributing to a more optimistic economic assessment [5][6]. Political Context - Powell's term will end before June, potentially leading to a new phase in President Trump's campaign for lower rates, which has influenced the Fed's decisions over the past year [3]. - The only officials voting for a rate cut were closely associated with Trump, indicating political pressures on the Fed [3]. Market Reactions - Financial markets showed little reaction to the Fed's decisions, with bond yields remaining stable and the S&P 500 showing minimal changes [7]. Inflation Insights - Powell described the inflation situation as "modestly positive," although he projected that the Fed's preferred inflation gauge would end 2025 at 3%, exceeding the target by one percentage point [8]. Central Bank Independence - Powell emphasized the importance of central bank independence amidst political pressures, including a Department of Justice investigation into the Fed [9][10][11].

Speaking on Wednesday, Mr Powell said that the court battle “is perhaps the most important legal case in the Fed’s 113-year history”.The investigation into Mr Powell comes after Mr Trump tried to sack Fed governor Lisa Cook over unproven allegations of mortgage fraud, a move that she is contesting in the Supreme Court.“This is the route by which inflation creeps up gradually, and then you find yourself with a problem which only a deep recession can solve.”“I do think that the current situation is a challeng ...

The point of of independence is not to protect policymakers or anything like that. It just is that every advanced economy, democracy in the world has come around to this common practice. It's just an institutional arrangement that is that is served the people well, and that is to have a separation between.I do not have direct elected official control over the setting of monetary policy. And the reason is that monetary policy can be used, you know, through an election cycle to to affect the economy in a way ...

And before we get into the substance, the economic backdrop, the policy, I want to pick up on the more assertive stance, the more aggressive posture, if you will, that chairman Pal seems to be taking this year to defend central bank independence. I'd love your reaction to that and whether you believe he'll carry that into the news conference tomorrow afternoon. >> Yeah, good morning, Jonathan. I think uh the chairman had to take this move. I think we have been dancing around these threats uh to independence ...

Corporate Developments - Netflix (NFLX) stock declined after the company's quarterly results failed to impress investors, indicating a challenging environment for earnings reports as S&P 500 companies' earnings beats are met with historically poor share-price reactions [6] - A busy earnings season included reports from Johnson & Johnson (JNJ), Charles Schwab (SCHW), and other mid-sized financial institutions, highlighting the mixed performance across sectors [6] Market Reactions - The Dow Jones Industrial Average rose approximately 1.2%, gaining over 550 points, while both the Nasdaq Composite and S&P 500 also increased by about 1.2%, with the S&P 500 turning positive for the year following these gains [2] - Stocks experienced a surge in the afternoon after President Trump's announcement regarding a framework for a deal on Greenland, which alleviated some market fears [3][4]