How Trump’s Ally at the Fed Is Remaking Bank Oversight; Central Banks Gobble Up Gold By Michael Maloney
Michelle Bowman, the Federal Reserve’s vice chair for supervision, is moving to roll back what she and many in the Trump administration view as the regulatory excesses that followed the 2008-09 financial crisis. Bowman says she wants to make the exam process more transparent and fair for banks, and has criticized the Fed’s examiners for focusing too much on “procedural and documentation shortcomings” and not enough on a bank’s core financial risks. Meanwhile, as investors drive the price of gold over $5,000 a troy ounce, they are competing for the precious metal with a set of buyers for which price is rarely an issue: central banks.
Top News How Trump’s Ally at the Fed Is Remaking Bank Oversight
In September, President Trump’s pick to oversee banking supervision at the Federal Reserve met with the top officials from the central bank’s 12 regional districts and delivered a rebuke.
The staff of the Fed’s quasi-independent regional banks are the ones who conduct most of its banking exams, ensuring the nation’s financial institutions are stable. Michelle Bowman, the Fed’s vice chair for supervision, wanted a new direction for supervision, in part to ease the burden on banks . Some regional examiners apparently hadn’t received the message.
Five Reasons Gold Is Surging
Central banks, which were net sellers of gold for many years, flipped to net buyers
in 2010 when they reassessed their risks following the financial crisis sparked by the American mortgage meltdown. Central banks picked up the pace of their gold purchases in 2022. That is when the West sanctioned Russia over its invasion of Ukraine.
Gold Surges Above $5,000 on Shutdown Fears, Geopolitical Tensions
Silver Hits $100 Milestone
The First Three Weeks of the Year Will Reshape the World
“There are decades where nothing happens; and there are weeks where decades happen.” The quote, often attributed to Lenin, aptly describes the first weeks of 2026. This month, a series of proverbial earthquakes have shaken all those assumptions with the potential to reshape the political and economic landscape for years to come . Though the fog of uncertainty still hangs, here is WSJ chief economics commentator Greg Ip’s take on what happened and why it matters.
U.S. Economy Consumers’ Mood Improves in January
U.S. consumers felt better about the economy in January, with sentiment lifting off historical lows reached late last year, according to the University of Michigan’s monthly survey. The sentiment index came in at 56.4 this month , versus 52.9 in December. Joanne Hsu, the survey’s director, said January’s gains were broad-based across demographics and that a chaotic month for international affairs hadn’t seemed to affect consumers’ economic views.
Health Insurance Is Now More Expensive Than the Mortgage for These Americans
Millions of Americans are starting to see their monthly health-insurance bills rise , a new pressure point for a nation still frustrated with the high cost of living.
Week Ahead: Fed Rate Decision in Focus
Following a turbulent week that ended with calm after President Trump backed off his threats to impose tariffs against European countries over Greenland, focus returns to economics and monetary policy , with a Federal Reserve meeting likely to be the highlight of the days to come.
Kansas City Fed Services Activity Index Rises in January
Services activity in the middle of the U.S. rose modestly in January, and expectations for future activity also edged higher, according to a monthly survey by the Kansas City Fed. The Tenth District Services Survey’s composite index came in at 2 following readings of 1 in December and minus 6 in November. Readings above zero indicate expansion, while those below zero indicate contraction. The Kansas City Fed said growth in the consumer sector was primarily driven by tourism activity in January, while business activity growth eased, with declines in real-estate services. The bank said its index of expectations for future services activity rose to 15 in January from 11 in December. (Dow Jones Newswires)
The New Tax Rules That Can Get You a Bigger Refund This Year
Americans can expect smaller tax bills and bigger refunds this year-after they navigate a pile of new rules from last year’s tax law. Taxpayers can file 2025 returns starting Monday. “Any time people have big life changes or there are law changes, people can miss benefits they’re entitled to,” said Andy Phillips, vice president of H&R Block’s Tax Institute. Taxpayers can file 2025 returns starting Monday. Here are the most important changes
to be aware of.
Key Developments Around the World Trump Threatens New Tariffs on Canada Over China
President Trump threatened a major escalation
in a brewing trade war against Canadian Prime Minister Mark Carney’s government, warning that the U.S. would impose 100% tariffs on all Canadian goods and products coming into the U.S. if “Canada makes a deal with China.”
Canada Retail Sales Pull Back After Rise in November
The World Economy Is Hooked on Government Debt
This year, global growth is being brought to you by the government. Rocked by an avalanche of growth-sapping shocks, countries around the world are tearing up savings plans and rolling out large fiscal stimulus packages
financed by bumper budget deficits.
German Business Sentiment Stalls
Confidence among German firms was flat in January , with sentiment failing to pick up steam despite the rollout of government stimulus.
Financial Regulation How Banks Can Appease Trump on Credit-Card Rates
President Trump reiterated his desire for a credit-card interest rate cap this week. On paper, that’s a huge problem for issuers of plastic, writes WSJ’s Telis Demos
for Heard on the Street. But if the experience of other industries that have faced threats of price controls from the administration is any guide, investors might actually want to consider buying bank stocks. Betting on what policies will come out of Washington is always tough in an election year. But if credit card lenders are the pharma and auto companies of this year, it could wind up being a very good one for them.
Forward Guidance Monday (all times ET)
8:30 a.m.: Chicago Fed National Activity Index (CFNAI)
8:30 a.m.: U.S. Advance Report on Durable Goods
8:30 a.m.: Deutsche Bundesbank President Joachim Nagel speaks at Bundestag Finance Committee Monetary Policy Dialogue
10: 30 a.m.: Texas Manufacturing Outlook Survey
Tuesday
Time N/A: Two-day FOMC meeting begins
8:55 a.m.: Johnson Redbook Retail Sales Index
9 a.m.: S&P Cotality Case-Shiller Indices
9 a.m.: U.S. Monthly House Price Index
10 a.m.: Richmond Fed Business Activity Survey
10 a.m.: U.S. Consumer Confidence Index
12 p.m.: Deutsche Bundesbank President Joachim Nagel speaks at digital euro event
6:50 p.m.: Bank of Japan Monetary Policy Meeting Minutes
Research Don’t Expect to Learn a Lot at This Week’s FOMC Meeting
BofA Securities doesn’t expect to learn a lot from this week’s Federal Open Market Committee meeting rate. “The balance of risks around the two mandates hasn’t changed much since [December]. Chair [Jerome] Powell’s press conference might be dominated by questions about politics rather than policy,” it says in a note to investors. When it comes to market pricing, the note says investors should watch for Powell’s take on the December unemployment decline, and the link between robust economic activity and the neutral rate.
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 Michael Maloney in New York and Nihad Ahmed in Barcelona.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
01-26-26 0730ET