New Zealand’s labor market showed signs of momentum in the final quarter of the year, but despite this, the unemployment rate rose to 5.4 percent, marking the highest level in a decade. The increase in unemployment occurred despite strong job growth, as the labor force participation rate rose to 70.5 percent. These data were in line with central bank expectations, and markets are pricing in an interest rate hike toward late 2026.

According to Axios, nuclear talks between Iran and the United States are scheduled to be held on Friday in Oman. The meeting, which was initially planned to take place in Turkey, was moved to Oman at Iran’s request. The talks could play a decisive role for the region and Iran’s economy. Despite news of the negotiations, domestic markets appear to remain skeptical about their outcome.

Stephen Miran, a member of the Federal Reserve Board of Governors, said the current restrictive interest rate should be reduced by more than 1 percentage point this year. Miran, who opposed the central bank’s decision to hold rates steady last week, stated, “I do not see strong inflationary pressures in the economy, and I believe rates have been kept too high.” He has previously criticized gradual rate cuts and called for larger reductions.

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.