Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Trump to Announce New Federal Reserve Chair Pick as Powell Replacement Looms 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
French Prime Minister François Bayrou has called on the European Central Bank (ECB) to accelerate interest rate cuts to support economic growth in the eurozone. In an interview with La Tribune Dimanche, Bayrou stressed that Europe must remain competitive with global superpowers like China and the U.S.
“The ECB must actively support economic activity in the eurozone. If it fails to cut rates faster, we will not be on equal footing with Chinese and American competition,” Bayrou said, marking a rare intervention by a French leader on monetary policy.
The ECB recently lowered interest rates by 25 basis points—the fifth cut since June—bringing the deposit rate down to 2.75%. However, borrowing costs remain significantly higher than pre-inflation levels, following price surges triggered by the Russia-Ukraine war. Higher interest rates have slowed economic activity, with France’s economy contracting by 0.1% in Q4 2024 and unemployment rising. Inflation in France has dropped below the ECB’s 2% target, while the eurozone inflation rate stands at 2.4%.
Economists argue that the ECB may be acting too slowly, as restrictive rates continue to weigh on businesses and consumers, even as Germany’s economy contracts and recession fears grow. Some believe the ECB is "behind the curve" in making necessary adjustments.
Meanwhile, Bayrou confirmed he would use special constitutional powers to pass France’s 2025 budget. The country entered the new year without a budget due to the previous government’s collapse.
As Europe faces economic headwinds, Bayrou’s call for faster rate cuts underscores growing concerns about the region’s competitiveness and financial stability.
