The Bank for International Settlements (BIS) warns that the AI investment boom, while driven by genuine technological progress, may mirror the dot-com bubble's speculative excess. Concerns focus on whether current investments will yield sustainable returns, the concentration of financing, and the risk of inflated valuations despite AI's transformative potential.
Federal Reserve Chairman Kevin Warsh stated that US central bankers will decide on interest rate hikes in four weeks. He noted that while US-Iran peace talks and falling energy prices offer reassurance, the "AI boom" and increased capital expenditures pose potential inflationary challenges for monetary policy.
The Bank for International Settlements (BIS) warns that the global AI spending boom, projected to exceed $1 trillion by 2026, could trigger financial stress if expected returns disappoint. This could tighten liquidity across equities and credit, potentially impacting Bitcoin as a risk asset.
Gold prices are seeing limited gains despite falling oil prices, as central banks signal potential rate hikes to combat inflation. Geopolitical developments, including US-Iran talks and Israeli-Lebanese deconfliction, are also influencing the market, alongside a strengthening US Dollar.
European Central Bank board member Gabriel Makhlouf warned that a temporary agreement to end the Middle East conflict might not immediately end the global energy shock, potentially prolonging inflationary pressures due to energy infrastructure damage. Meanwhile, the US Federal Reserve begins a new phase under Kevin Warsh, with expectations of holding interest rates steady amid rising inflation and a strengthening labor market.
Central banks are increasingly storing gold bullion domestically, driven by geopolitical tensions and concerns over accessibility of overseas reserves. The World Gold Council survey shows a rise in domestic storage and diversification of foreign locations, with expectations of continued central bank gold purchases.
Gold prices are holding strong, supported by central bank purchases and an interim US-Iran peace agreement that shifted focus from geopolitics to economics. Easing tensions reduced inflation fears and Fed tightening expectations, leading to lower Treasury yields and a softer dollar.
A World Gold Council survey reveals 45% of central banks plan to increase gold reserves due to geopolitical uncertainty and declining trust in the US dollar. Most expect global reserves to rise, with gold seen as a crisis hedge and inflation buffer.
US and UK central banks are anticipated to maintain current interest rates this week. A recent Middle East peace deal is expected to reduce inflationary pressures, influencing these decisions. The Fed's new chair, Kevin Warsh, will be closely watched for his inflation outlook.
Asian markets and European futures rallied Monday following a tentative US-Iran peace agreement, which is expected to ease global inflation and reduce central bank rate hike pressure. Oil prices dropped significantly, with Brent crude falling 4.7% to $83.24 a barrel.
Asian markets and European futures surged, while oil prices dropped significantly following a tentative peace agreement between the US and Iran. The deal is expected to ease global inflationary pressures, potentially reducing the need for further interest rate hikes by central banks.
Major central banks are on high alert to reset monetary policies due to the oil shock from the US-Iran war. The Bank of Japan is expected to raise interest rates significantly, while the Bank of England may adopt a cautious approach.
A study presented at a joint symposium by the Korea Capital Market Institute, the Korean-American Finance Society, and the Korea Institute of Finance found that central banks significantly reduce inflation when they focus on their core mandate of price stability. Analyzing speeches from 24 central banks and the ECB, researchers observed that a shift in policy messaging from 'diversified' to 'focused' led to a 0.31 percentage point decrease in inflation over eight quarters.
The Bank of England is warning the public about AI-generated scams after deepfake videos depicting Nigel Farage and Governor Andrew Bailey fighting circulated on X. Bailey urged vigilance and reporting of such content, highlighting the rise of fake adverts impersonating central banks.
The Bank of England warns of rising AI-generated scams after deepfake videos of Nigel Farage and Governor Andrew Bailey fighting spread online, urging vigilance and reporting of such content.
Central banks are increasing their gold holdings, with China being the largest buyer since early 2022. Gold's share in global foreign reserves surpassed US Treasuries and the euro in 2025, driven by valuation effects and a desire for diversification and geopolitical risk hedging.
Bitcoin's price is heavily influenced by upcoming US jobs reports, particularly the JOLTS survey and payrolls data. These figures will signal the Federal Reserve's monetary policy direction, affecting interest rates, dollar strength, and overall market liquidity.
Robert Kiyosaki notes central banks are reducing US debt holdings for gold, signaling increased trust in gold as a safe-haven asset. He highlights gold's recent 65% price surge versus traditional savings accounts' 4% interest.
African central banks, including BCEAO, are accelerating discussions on regulating digital finance due to the rise of crypto and stablecoins. They aim to build public alternatives to prevent foreign private infrastructure dominance in regional financial flows.
Global central banks are collectively changing their stance, impacting stocks and gold. Meanwhile, Zheng Liwen fiercely criticized Lai Ching-te for 30 minutes, accusing him of deception.
Mainland Chinese investors reduced their holdings of US Treasury bills in March due to global market uncertainties, including the US-Israel war on Iran, which fueled inflation and energy price concerns, analysts said.
Rising sovereign yields, high public debt, energy shocks, and sticky inflation raise concerns of a global economic crash, though policy settings differ from 2008, with better-capitalized banks and constrained rescue options due to higher debt levels.
Warsh would succeed outgoing Fed chair Jerome Powell as Trump continues his push to influence the US central bankSign up for the Breaking News US newsletter email The US Senate is expected to confirm Kevin Warsh this week as chair of the Federal Reserve, as Donald Trump continues his campaign to influence the world’s most important central bank.The Fed’s influence over the economy spans from the job market to mortgage rates, and its every move is carefully scrutinized by investors on Wall Street. Warsh’s confirmation comes at a turbulent time for the central bank, which has fallen under intense scrutiny from Trump for not lowering interest rates. Continue reading...
In an extraordinary break from the diplomatic restraint typical of central banks, a dozen leaders of the world’s foremost monetary institutions issued a joint statement in January declaring their “full solidarity” with the US Federal Reserve and its embattled chair, Jerome Powell. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” they wrote. The move was intended to shore up the separation of monetary...
