Fed's Miran Scolds Central Bankers Who Defended Powell

Fed's Miran Scolds Central Bankers Who Defended Powell By Vicky Ge Huang

Stephen Miran, a Federal Reserve governor appointed by President Trump, criticized top global central bankers who defended Fed Chair Jerome Powell amid the Justice Department's criminal probe. Also yesterday, Minneapolis Fed leader Neel Kashkari and Philadelphia Fed chief Anna Paulson weighed in on the outlook for interest rates, while new data showed that prices charged by goods- and services-producing companies increased in November, but the month's wholesale inflation was more modest than economists had expected.

Top News Miran Rejects Idea That DOJ Investigation Could Hurt Fed's Credibility

Fed governor Stephen Miran said that a letter in Jerome Powell's support signed by prominent central-bank officials from around the world was an overstep . "I don't think it's appropriate for central bankers to get involved in non-monetary-policy issues in their own country, and I think it's even less appropriate in other countries," Miran said in a Q&A session at an economics conference in Athens.

Kashkari Says Economy's Strength Complicates Case for Rate Cuts

Minneapolis Fed President Neel Kashkari said the U.S. economy has remained stronger than expected under higher interest rates-a resilience that complicates the Fed's decisions on when and how much to cut interest rates. Kashkari said inflation is moving lower but remains well above the Fed's 2% target, while the labor market has cooled without showing signs of significant stress. (Dow Jones Newswires)

Economy Best Served by Independent Federal Reserve, Kashkari Says

Paulson Hints at More Interest-Rate Cuts in 2026

Philadelphia Fed President Anna Paulson signaled that interest rates could move lower later this year if inflation continues to ease and the labor market stabilizes, even as economic growth remains solid. Paulson said the current level of the federal-funds rate remains "a little restrictive" and suggested that further easing would be appropriate. (DJN)

Central Banks Around the World China's Central Bank Lowers Rates on Structural Policy Tools

China's central bank rolled out targeted easing measures

to bolster support for sectors deemed strategic by Beijing, as policymakers seek to ensure a strong start to the year.

Bank of Korea Holds Steady as Won Weakness Spurs Caution

South Korea's central bank held its base rate steady

for a fifth consecutive meeting and removed a reference to potential rate-cuts from its policy statement, as weakness in the local currency limits room for further easing.

U.S. Economy Wholesale Prices Rose Less Than Expected in November

Prices charged by goods- and services-producing companies increased in November , but the month's wholesale inflation was more modest than economists had expected.

Retail Sales Brightened in November

Sales growth for U.S. retailers picked up in November , evidence that the consumer economy didn't lose steam in the home stretch of last year. Retail sales grew by 0.6% in November to $735.9 billion, an improvement from a slight pullback by shoppers in October.

Beige Book Finds Low- to Moderate-Income Consumers Hesitant to Spend

Low- to moderate-income consumers were seen to be increasingly price sensitive and hesitant to spend on nonessential goods and services, according to the Fed's beige book report. Meanwhile, several districts noted that spending was stronger among higher-income consumers with increased spending on luxury goods, travel, tourism, and experiential activities. Also, employment was mostly unchanged in the most recent period, with eight of the 12 Fed districts reporting no changes in hiring. Meanwhile, multiple districts reported an increase in the usage of temporary workers, with one contact reporting this allows them "to stay flexible in uncertain times." When firms were hiring, it was mostly to backfill vacancies rather than create new positions, the report said. (DJN)

Financial Regulation Banks and Crypto Clash Over Tokens That Pay More Than Deposits

The cryptocurrency and banking industries are locked in a lobbying battle

over digital tokens that yield annual payouts, a fight that threatens to derail legislation intended to bring crypto into mainstream finance.

Trump-Linked Crypto Firm Signs Stablecoin Agreement With Pakistan

An affiliate of World Liberty Financial, the Trump family's flagship crypto venture, reached an agreement with the government of Pakistan

to explore using the company's stablecoin for cross-border transactions.

Swedbank Shares Climb After U.S. Justice Department Closes Probe

Shares of the Swedish bank rose to a new high after the U.S. Justice Department closed a money-laundering probe

into the bank without sanctions.

Kaiser Permanente Affiliates Agree to Pay $556 Million to Resolve False Claims Act Allegations

The complaint alleged that Kaiser pressured its physicians

to alter medical records of Medicare Advantage Plan enrollees, adding diagnoses that the physicians had not considered or addressed after patient visits, in order to receive higher payments from the government.

Forward Guidance Thursday (all times ET)

8:30 a.m.: Import & Export Price Indexes

8:30 a.m.: Empire State Manufacturing Survey

8:30 a.m.: Philadelphia Fed Business Outlook Survey

8:30 a.m.: Unemployment Insurance Weekly Claims Report - Initial Claims

8:45 a.m.: Federal Reserve Bank of Atlanta President Raphael Bostic speaks at Metro Atlanta Chamber board of directors meeting

1:30 p.m.: Kansas City Fed President Jeffrey Schmid speaks before the Economic Club of Kansas City

6 p.m.: Richmond Fed President Thomas Barkin speaks at VBA/VA Chamber Financial Forecast event

Friday

9:15 a.m.: Industrial Production and Capacity Utilization

10 a.m.: U.S. International Investment Position

10 a.m.: NAHB Housing Market Index

Research ANZ Sees Gold Above $5,000 on Geopolitical, Economic Uncertainty

Heightened geopolitical and economic uncertainty is expected to be a key driver of gold's performance this year, strengthening both safe-haven and diversification demand. "Geopolitical instability presents a compelling case for reserve diversification into gold," analysts at ANZ say. Meanwhile, concerns about the Federal Reserve's independence after U.S. federal prosecutors opened a criminal investigation into Chair Jerome Powell have unsettled investors and could potentially undermine confidence in U.S. assets. ANZ forecasts gold above $5,000 an ounce in the second half of the year, while flagging downside risks that include stronger-than-expected U.S. economic growth, a more hawkish Fed and easing geopolitical tensions. -Giulia Petroni

Basis Points The U.K. economy grew more than expected

in November, a boost for the government as it seeks to build momentum after years of economic drift. Germany's economy showed signs of recovery

last year after almost a decade in stagnation, but declining exports, intense competition from China and ensuring Berlin's massive stimulus funds are effectively deployed remain challenges to sustained growth. About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

01-15-26 0715ET