Our Scans · (FS.1.02) Central Banking · Weekly Summary

• [New] Recent steps by the Federal Reserve and other agencies will undermine the safety and soundness of banks and increase financial stability risks. Board of Governors of the Federal Reserve System
• [New] Global markets opened the week in a risk-off mood after three shocks hit together: a sharp AI and technology sell-off, stronger-than-expected US payrolls that raised expectations of Federal Reserve rate hikes, and renewed Iran-Israel tensions that pushed oil above $97 a barrel. CPA | The Credit Protection Association
• [New] Stronger-than-expected employment data pushed bond yields higher, reigniting fears that the Federal Reserve might not be done tightening. Crypto Briefing
• [New] A Federal Reserve-issued digital currency would represent a competitive threat to stablecoins like USDT and USDC. Crypto Briefing
• [New] Unless ECB President Christine Lagarde and her colleagues challenge current investor bets, monetary policy will stay on track for further tightening, with at least one more hike penciled in for the remainder of the year. financialpost
• [New] Investors are now focused on upcoming Canadian jobs data and inflation figures, which will shape expectations for the Bank of Canada's next interest-rate decision. IC Your Trading Edge | Official Blog | Blog
• [New] Core inflation exceeded expectations at 2.5%, prompting economists to state that an interest rate hike is becoming unavoidable with potentially one or two more increases expected later in 2026. IC Your Trading Edge | Official Blog | Blog
• [New] Due to resurging payroll job growth in the past three months, plus higher Treasury bond yields in the wake of the May payroll report, any Fed key interest rate cut will likely be postponed until transitory inflation cools later in 2026. investing.com
• [New] Rising Treasury yields signal anticipated US Federal Reserve rate hikes. ST
• [New] Recent employment figures have highlighted the resilience of the US economy, reinforcing expectations that the Federal Reserve will maintain a hawkish stance. investing.com
• [New] US inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists' views that the Federal Reserve could hold interest rates unchanged well into 2027. The Guardian
• [New] Fed rate policy matters: the current 4.25 to 4.5% range keeps pressure on bank net interest margins and unrealized bond losses, sustaining background failure risk above zero. Lines.com
• [New] At the wholesale level, the Eurosystem's Pontes initiative will connect TARGET services to distributed ledger technology (DLT) platforms, enabling settlement of DLT-based wholesale financial transactions in central bank money by the third quarter of 2026. European Central Bank
• [New] The European Central Bank is expected to adopt a more hawkish stance, with policymakers signalling that interest rate increases could begin as early as June should inflationary pressures persist. KPMG
• [New] Indonesia's central bank surprised markets with a larger-than-expected rate hike and a pledge to step up currency intervention. The Star
• [New] A sustained oil price shock that reignites inflation fears would likely delay or reverse any dovish pivot from the Federal Reserve. Crypto Briefing
• [New] The Bank of England is expected to raise interest rates in response to rising inflation in 2026. The Guardian
• [New] The Bank of England will place more weight on inflation than growth risks. Money Marketing
• [New] Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with expectations of a 25-basis-point hike in December. ST
• [New] The Fed held interest rates steady at 3.5% -3.75%, but markets expected fewer rate cuts ahead. POEMS
• [New] At the Federal Reserve, recent commentary has reinforced the idea that policymakers are gradually shifting away from an easing bias toward a more neutral stance as inflation risks tied to energy prices remain elevated and the broader economy continues to show resilience. Mortgage News Daily
• [New] European inflation cooling faster than expected creates a genuinely different monetary policy dynamic than the US is experiencing. Synergistic Financial Advisors

Last updated: 11 June 2026