Sep 18, 2026
Andrew Bailey, governor of the Bank of England, has cautioned G20 finance ministers that advanced artificial intelligence technology could trigger a major international economic downturn and threaten global financial stability. The warning comes amid growing concerns about AI-powered trading and its potential to disrupt monetary policy.
Federal Reserve Chair Kevin Warsh warned at the Jackson Hole conference that inflation remains too high and suggested the central bank may need to raise interest rates in coming months, despite potential political pressure from President Trump.
Federal Reserve Chair Kevin Warsh indicated at the Jackson Hole economic symposium that the central bank may raise interest rates in the coming months, stating inflation is still too high and "we have work to do." This represents a clearer signal about potential rate hikes than Warsh had previously provided.
The Bank of Japan stated in its quarterly outlook report that global AI-related demand may exert lasting upward pressure on Japan's inflation, suggesting that AI-driven investment could outweigh productivity gains in the short term and strengthen the case for a near-term interest rate increase.
Federal Reserve Chairman Kevin Warsh testified before Congress for the first time on Tuesday, pledging to make high inflation "a thing of the past" and calling for "regime change" at the central bank. He also vowed to "do my job" if challenged by President Trump, his most direct comment yet on maintaining Fed independence.
The European Central Bank's digital euro initiative has progressed from initial exploration to broader institutional and financial sector alignment by 2026, as European institutions increasingly converge on the strategic rationale for a euro-denominated central bank digital currency.
European Central Bank board member Isabel Schnabel stated that increased stablecoin use could reinforce the dollar's global dominance, undermine some nations' monetary policy autonomy, and diminish the role of the euro.
The Federal Reserve maintained interest rates unchanged in what is expected to be Jerome Powell's final FOMC meeting as chairman, with a split 8-4 vote creating uncertainty around future policy. Kevin Warsh cleared Senate Banking Committee approval to become the next Fed chair.