The Federal Reserve's FOMC statement has been significantly shortened under new Chair Kevin Warsh, with the latest release containing around 130 words compared to over 300 in previous meetings. Warsh stated the change aims for a simpler, fact-based communication, removing forward guidance.
EU and China trade tensions rise as EU policymakers consider a tougher stance on trade despite pressure from Beijing
Investigation reveals UK security services, including former PSNI chief George Hamilton, were involved in formulating the controversial Legacy Act, which offered amnesty to soldiers and paramilitaries, sparking outrage among victims' groups in Northern Ireland.
Donald Trump is reportedly outsourcing Iran policy to Middle East allies as he seeks an exit from conflict. Despite threats, US plans for a major strike were postponed, with Trump citing negotiations and requests from Gulf leaders, though their awareness of the planned strike is questioned.
The clock is ticking: the European Union has about two years to decide if it is willing to make the sacrifices and take the risks necessary to become the economic and political power it envisions itself to be. The EU’s proposed Industrial Accelerator and Cyber Security acts are up for negotiation within the bloc’s policymaking bodies. In around two years’ time, we will know their final form. Beijing has two years to influence this: that work has already started with carrots – proposals for a...
Daniel Gros, director of the Institute for European Policymaking at Bocconi University, explains why the euro failed to rival the US dollar and applies those lessons to the yuan. He identifies the dollar's 'lock-in effect'—its deep, open financial markets and network advantages—as the key barrier. Gros argues that international currency status requires open capital accounts, which means losing control over exchange rates—the same trade-off that made Germany reluctant to globalise the Deutschmark.
Justice Department has referred the criminal probe into Fed headquarters renovations to the central bank's inspector general, leaving Chair Jerome Powell to decide whether to leave or stay. Powell had vowed to remain until the probe resolved. With his term as chair expiring May 15 and Trump threatening to fire him, Powell faces a pivotal choice that could impact Fed independence and monetary policy at a critical time.
Daniel Gros is the director of the Institute for European Policymaking at Bocconi University. Previously, he served as an adviser to the European Parliament, collaborated with the European Commission as economic adviser to the Delors Committee, which developed plans for the euro, and worked at the International Monetary Fund. In this interview, Gros examines the structural tensions shaping EU-China economic ties, draws lessons from the euro’s experience to analyse the yuan’s...
