United States
Warsh declines to outline Fed’s reaction function
Chair tells Jackson Hole that ‘humble, never naïve’ approach will work and assesses US economy
Book notes: The banker who made America, by Richard Vague
This well-researched book makes a strong case that without the efforts of Thomas Willing, the US war of independence may well have been lost
Iran’s central bank chief says its oil exports are at zero
Governor adds that foreign reserves remain frozen as Trump vows ‘economic D-day’ against country
US Treasury doubles long-term bond purchases
Treasuries with 10–20 and 20–30-year maturities to be bought at $4 billion 'per operation'
Warsh called for fewer FOMC meetings in July
Minutes show committee agreeing on above-target inflation but disagreeing over AI’s effect on prices
Sticky wages help explain depressed US sentiment – paper
Lack of salary indexation, rather than inflation, to blame for decline in sentiment, authors find
Strong recovery in US treasury purchases is ‘unlikely’ – paper
Central banks’ demand for US government bonds has ‘plateaued’ as reserve managers diversify
Comms staff need to reflect on how their messages are perceived
BoE’s Eric Tong discusses research probing how the public receives central bank messages via the media
CFTC uses emergency powers to overturn prediction market ban
Temporary US-wide ban would make financial instruments “waste away”, chairman says
Study compares private credit and leveraged loan market structure
Some firms better able to substitute between funding types than others, authors find
Resolution reforms may cut credit supply – CEPR paper
Easier requirements on smaller US banks helps reveal impact of ‘living wills’
Trump downplays reports of regular calls with Warsh
Talks between president and Fed chair have precedent, but frequent communications would be unusual, economist says
Trump renews push to sack Fed governor Lisa Cook
White House formally notifies Cook of possible dismissal, and gives governor until August 26 to respond
Central Bank of Brazil delays crypto transfers to fight fraud
Latin America’s largest economy targets stablecoins after Trump’s tariffs against Pix
Iraq receives $500m from Fed as government faces cash shortage
Oil-exporting country’s income comes under strain as Hormuz uncertainty persists
New York and Dallas Feds to launch private credit survey
Firms with over $50 million invited to discuss lending standards and monetary policy implications
US Treasury looks to deepen G7 cyber co-operation after exercise
Canada, France, Germany, Italy, Japan, UK and the US adapt long-term strategy amidst mounting tension
Joint US-Japan FX intervention could advance BoJ tightening
Experts say tighter policy needed to lock in yen gains over the long term
Bank of England keeps rates at 3.75%
Split 6–3 decision points to divisions over inflation outlook amid escalation of Iran war
Federal Reserve holds rates with three members dissenting
Hammack, Kashkari and Logan push for 25bp rise in what FOMC chair says was a collegial ‘family fight’
One ledger or eight: the design choice that will shape cross-border money
Two rival tokenised settlement networks have both expanded – mBridge into Macau and Mongolia, Agorá to Canada. The contest between them is not primarily about technology, and not yet about currencies. It is about who keeps the ledger, argues Marcello…