Fed Holds Rates Steady as Middle East Conflict Clouds Inflation Outlook 
ANZ and Westpac Forecast Two RBA Rate Hikes in March and May 2026 
Australia-EU Free Trade Deal Signed After Years of Negotiations 
Israel Eyes Litani River as New Border Amid Escalating Lebanon Offensive 
RBA Set for Back-to-Back Rate Hikes, Westpac Forecasts 
Oil Prices Plunge Over 6% as Middle East Ceasefire Hopes Ease Supply Fears 
Asian Stocks Gain Amid Iran Conflict Uncertainty 
Trump Backs Down on Iran Strikes After Gulf Allies Sound the Alarm 
China Holds Benchmark Loan Prime Rate Steady for Tenth Consecutive Month 
Iran-Israel Missile Strikes Continue Amid Mixed Signals on U.S.-Iran Diplomacy 
U.S. Oil Prices Slide as Middle East Ceasefire Talks Spark Market Optimism 
Pakistan's Diplomatic Rise: Mediating U.S.-Iran Peace Talks 
Asian Currencies Weaken as Dollar Rebounds Amid Middle East Uncertainty and Japan Inflation Data 
Bachelet Pushes Forward With UN Secretary-General Bid Despite Chile's Withdrawal 
Trump Says Iran Offered Major Energy Concession Amid Ongoing Negotiations 
UK Consumer Confidence Weakens Amid Middle East Conflict and Rising Living Costs 
U.S. President Donald Trump said he is not planning to fire Federal Reserve Chair Jerome Powell but refused to rule it out, intensifying criticism over Powell’s reluctance to cut interest rates. Speaking Wednesday, Trump labeled Powell a “terrible” chair and blamed him for keeping rates in the 4.25%-4.50% range amid rising inflation from Trump’s tariff policies.
Earlier, a Bloomberg report suggesting Powell’s imminent dismissal triggered market volatility—stocks fell, the dollar dipped, and Treasury yields jumped. Trump denied the report but confirmed he discussed Powell’s removal with GOP lawmakers. While reaffirming the Fed's independence, Trump hinted Powell could be removed for cause, referencing unproven allegations tied to a $2.5 billion renovation of the Fed’s headquarters.
Powell, first appointed by Trump in 2017 and reappointed by President Biden, has stated he will serve his term through May 2026. Legal precedent prevents firing a Fed chair over policy disagreements, requiring clear misconduct or cause. The Supreme Court recently upheld this interpretation.
Trump’s repeated attacks have alarmed economists and lawmakers. Republican Senator Thom Tillis warned that firing Powell would undermine the Fed’s independence and global market confidence. Senate Majority Leader John Thune and House Financial Services Chair French Hill dismissed the likelihood of Powell’s dismissal.
Amid the controversy, Powell asked the Fed’s inspector general to review the renovation project after Trump’s budget chief accused him of wasteful spending. The Fed publicly disputed these claims.
Economists like JPMorgan’s Michael Feroli warned that weakening the Fed’s autonomy could stoke inflation fears and increase borrowing costs. Meanwhile, speculation about Powell’s successor grows, with Treasury Secretary Scott Bessent and Fed Governor Christopher Waller among the rumored candidates.
Trump’s pressure campaign risks destabilizing the Fed at a critical economic juncture.
