We will start with the world’s most powerful central bank where, following the Federal Reserve’s first interest rate cut of 2025, a large amount of “Fedspeak” provided deeper insights into both the key policy divisions and a growing openness to potential reforms. The primary policy division centers on the neutral interest rate—specifically, its level and how quickly the Fed should aim to reach it. Underpinning this is a difference in views about the extent of tariff cost pass-through to inflation. Some officials see the recent tepid pass-through as a prelude to something larger, while others view it as indicative of ... (full story)