latest news in economy
Warsh Nomination Signals Strategic Pivot to Strong Dollar Policy
Washington D.C., Sunday, 1 February 2026.
President Trump’s nomination of Kevin Warsh as Federal Reserve Chair marks a decisive pivot toward a “King Dollar” policy for 2026. This strategic shift aims to prioritize currency stability, sparking immediate volatility in global markets. Following the announcement, the U.S. dollar strengthened while commodities plummeted—gold fell over 9% and silver crashed nearly 27% in a single day. Warsh, a former Fed Governor and critic of post-crisis stimulus, proposes a new “Accord” with the Treasury to manage the balance sheet and curb inflation. Investors must now prepare for a regime change characterized by tighter monetary conditions and a potential repricing of hard assets.
Sahm Rule Creator Warns of Structural Labor Market Risks Beyond Recession Indicators
New York, Saturday, 31 January 2026.
Economist Claudia Sahm warns that a deceptive “low-hire” dynamic is masking structural labor vulnerabilities. She argues that relying on standard recession metrics misses these slow-moving shifts, a danger heightened by impending Federal Reserve leadership changes.
Stalled Growth in November Points to a Shrinking Canadian Economy
Ottawa, Saturday, 31 January 2026.
Canada’s economic engine stalled in November 2025, showing zero growth after a decline in October. This stagnation suggests the economy likely shrank during the fourth quarter, performing worse than the Bank of Canada predicted. While service sectors like retail managed a 1.3 percent rebound, they were overpowered by weakness in goods production. The most alarming data point is a 6.4 percent plunge in auto manufacturing, driven by a global semiconductor shortage. With the economy failing to expand for much of late 2025, this data highlights how trade uncertainty and supply chain issues are actively braking national growth.
Major Corporate Job Cuts Test Resilience of United States Labor Market
Washington, Friday, 30 January 2026.
Despite Amazon and UPS announcing nearly 50,000 combined job cuts this January, initial jobless claims unexpectedly dropped to 209,000, highlighting a complex disconnect in the early 2026 labor market.
Kevin Warsh Emerges as Frontrunner Ahead of Trump's Friday Fed Announcement
Washington, Friday, 30 January 2026.
President Trump is scheduled to announce his nominee for Federal Reserve Chair this morning, January 30. Former Governor Kevin Warsh has surged as the overwhelming favorite in prediction markets to replace Jerome Powell, potentially signaling a decisive shift in future monetary policy.
Global Growth Remains Steady in 2026 Despite Geopolitical Upheaval
London, Thursday, 29 January 2026.
Despite seismic shifts in the geopolitical landscape and aggressive new trade policies, the global economic engine remains surprisingly steady. Recent analyses from the IMF and Reuters indicate that global growth for 2026 is projected at approximately 3 percent, virtually unchanged from previous forecasts. This aggregate stability, however, masks significant regional divergence: while the U.S. and China are expected to expand by 2.3 percent and 4.5 percent respectively, the Eurozone trails with a forecasted growth of just 1.2 percent. Economists attribute this resilience largely to AI-driven productivity gains which are currently offsetting headwinds from trade fragmentation and high sovereign debt. Nevertheless, the outlook remains fragile; the stability of the 2026 economy relies heavily on the assumption that current trade truces hold and that AI investments yield tangible productivity results without triggering a market correction.
Microsoft Plunge Sinks Markets as AI Spending Fears Overshadow Earnings Beat
New York, Thursday, 29 January 2026.
Indices retreated Thursday as Microsoft plunged over 11%—its worst day since 2020—despite beating estimates, as a massive $37.5 billion quarterly capital spend raised concerns about AI returns.
Treasury Secretary Defends Federal Reserve Probe and Touts New Child Savings Program
Washington D.C., Thursday, 29 January 2026.
Treasury Secretary Scott Bessent revealed 600,000 families applied for the new $1,000 investment accounts in just one week, while simultaneously defending the Justice Department’s unprecedented investigation into Federal Reserve Chair Jerome Powell.