Japan Eyes Bigger GPIF Investment in Domestic Assets as BOJ Independence Concerns Grow 
Gold Prices Slip as Stronger Dollar, Fed Rate Outlook Weigh on Bullion 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
European Regulators Clash With U.S. Treasury Over Private Credit Transparency 
US Stock Futures Steady as Oil Prices Ease, Iran Talks Boost Market Sentiment 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
Bernstein Raises 2026 Nickel Price Forecast as Indonesia Tightens Supply 
Japan Revises Economic Blueprint to Reassure Markets on BOJ Independence 
Dollar Slips After Fed Minutes as Iran Tensions, Inflation Risks Keep Markets Cautious 
Denmark Central Bank Intervenes to Support Krone Peg Against Euro 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Mary Daly Says AI Uncertainty Clouds Fed Rate Outlook Despite Restrictive Policy 
China Inflation Cools in June as Producer Prices Hit Four-Year High 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
The Federal Reserve reaffirmed its commitment to restoring price stability, saying it is prepared to "act forcefully" if necessary to keep longer-term inflation expectations anchored around its 2% target.
The pledge came in the U.S. central bank’s semiannual Monetary Policy Report, released Friday ahead of Federal Reserve Chair Kevin Warsh’s testimony before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services next week.
The report arrives as inflation remains the primary focus of U.S. monetary policy. Rising oil prices triggered by the Middle East conflict fueled inflation during March, April, and May. While crude prices retreated to pre-conflict levels after a temporary U.S.-Iran peace agreement in late June, easing inflation concerns, renewed tensions this week have once again raised worries about higher energy costs.
According to the Fed, inflation has been influenced by several factors, including earlier tariff increases that lifted the prices of imported goods, higher energy prices caused by supply constraints following the Middle East conflict, and strong demand for artificial intelligence (AI)-related technologies.
The central bank noted that some short-term inflation expectations increased after the energy price surge earlier this year. However, most measures of longer-term inflation expectations remain within the range seen before the pandemic and continue to align with the Federal Open Market Committee’s long-run inflation objective of 2%.
The Fed emphasized that maintaining price stability is essential for a healthy economy and reiterated that its preferred inflation gauge remains the annual change in the Personal Consumption Expenditures (PCE) Price Index.
"The Committee is prepared to act forcefully to ensure that longer-term inflation expectations remain well anchored," the report stated.
The report also highlighted that alternative inflation measures, including the Dallas Fed’s trimmed mean PCE index, declined on a year-over-year basis in May. Warsh has previously argued that policymakers should broaden the range of inflation indicators used to assess underlying price pressures and has launched several task forces, including one focused on reviewing the Fed’s inflation framework.
Meanwhile, minutes from the Fed’s June 16-17 policy meeting, released earlier this week, showed policymakers remained evenly split over the future path of U.S. interest rates, underscoring ongoing uncertainty over inflation and monetary policy.
