Stress testing is vital for supervising the safety and soundness of the largest banks and preserving the stability of the financial system. Michael Barr has concerns over changes to the stress test system being considered by the Fed
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The US administration’s approach to financial markets mixes deregulatory policies with a range of other policies that are largely without precedent. Gary Gensler, Lev Menand and Joshua Younger catalogue the relevant policy shifts and consider how these shifts may impact financial stability, capital markets, and the global dollar system
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The US economy has shown resilience in a context of sweeping changes in economic policy. Jerome Powell says inflation and the hiring slowdown are creating challenging conditions and that balance of risks is changing
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The payment system is experiencing a technology-driven revolution. Christopher Waller outlines how the Fed is exploring the integration of emerging technologies such as tokens, smart contracts and AI into the payments system
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The world is drifting toward a fragmented trade environment defined by subsidies, retaliation and industrial duplication. Jianwei Xu discusses how the world is moving into a period of entrenched manufacturing overcapacity, threatening deflation and stagnant growth
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US trade deficits will have to be reduced to prevent a crisis down the road. Vijay Joshi and David Vines argue that fiscal consolidation, in association with a weaker dollar, appears to be the right way for the US to improve its trade balance
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Periods of deregulatory zeal preceded all three of the most infamous financial meltdowns over the past century. Michael Barr sounds the alarm about the potential impact of Washington’s push to massively deregulate America’s financial sector
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The US embrace of power politics violates both the letter and spirit of the WTO’s GATT, undermining the integrity of the multilateral trading system. Henrik Horn and Petros Mavroidis suggest that such violations are unlikely to cease in the foreseeable future
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History is full of evidence that tariffs harm economic performance. Michael Bordo and Mickey Levy assess the two waves of globalisation in modern history and how they were interrupted by tariffs and barriers to trade, and outline possible scenarios and probable outcomes
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Trump is correct to seek to revitalise American manufacturing. Stephen Ezell and Rodrigo Balbontin argue that the heavy reliance on tariffs is counterproductive and urge a smarter strategy focused on strategic investments in R&D, trade agreements, and support for innovation ecosystems
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