Talks between Iran and the United States are being held today at 10 in Oman. The United States is calling for Iran’s uranium enrichment to be reduced to zero, and the question is how far the Islamic Republic is willing to make concessions. According to Al Mayadeen, the talks are indirect and focus solely on nuclear issues. Meanwhile, China’s Vice Foreign Minister stated that Beijing supports the Islamic Republic of Iran in preserving its sovereignty, security, and territorial integrity.

Republican Senator Thom Tillis said he will oppose the confirmation of new Federal Reserve nominees even if President Jerome Powell is granted a presidential pardon. He stated that any confirmation depends on the formal conclusion of the Department of Justice investigation into Powell’s testimony before the Senate. Given the Republicans’ narrow majority, Tillis’s opposition has effectively stalled Kevin Warsh’s confirmation process. These political tensions have left the timeline for leadership transition at the Federal Reserve unclear and increased market uncertainty.

The Bank of England kept interest rates unchanged with a dovish stance. The decision to hold rates was made by a margin of just one vote, with 4 members voting in favor of a rate cut. This was in contrast to market expectations that only two members would vote for a cut and was interpreted as dovish. Mr. Bailey also stated in his speech that signs indicate inflation is approaching the target and economic shocks are easing, and if the economy evolves in line with expectations, conditions for an interest rate cut will be in place. As a result, the British pound weakened.

Macklem, Governor of the Bank of Canada, responded to a question about the BOC’s economic forecasts by saying that they cannot follow every threat made by President Trump, otherwise they would just go around in circles. Macklem also warned that rebuilding the economy and increasing productivity could take years. Structural changes required for the transition to a new economy may be painful, and Canada must accept these changes to avoid the worst-case scenario. He also noted that artificial intelligence has the potential to deliver economic growth without inflation, but so far there is little evidence of its impact on productivity.