Trump, in an unexpected move, introduced the most hawkish candidate for the Federal Reserve chairmanship. From the market’s perspective, this was not in line with Trump’s pressure to lower interest rates and caused a sharp decline in gold and precious metals. Warsh, who took office with the promise of a "regime change" in monetary policy and reducing the Fed’s balance sheet, claims that the productivity boom driven by artificial intelligence will curb inflation, but interest rate cuts are likely to be gradual.

Mr. Khamenei, the Supreme Leader of the Islamic Republic of Iran, once again threatened the United States in his speech today. He said that "the recent sedition was a coup" and that the Islamic Republic is not afraid of US threats and will not be pressured. Referring to domestic protests, he described the recent event as a "coup" and emphasized that the Islamic Republic will not start a war, but will deliver a firm and extensive response to any attack. He also warned that if the United States starts a war, the conflict will turn into a regional war.

China’s Purchasing Managers’ Index (PMI) returned to contraction territory in January 2026. The manufacturing index fell to 49.3 and the services index declined to 49.4, indicating simultaneous weakness in both domestic and external demand. This decline has intensified doubts about the effectiveness of the government’s recent support measures and shows that China’s economy continues to face persistent challenges in household demand and the property sector.

The minutes of the Bank of Japan indicate that the central bank has become more sensitive to the urgency of raising interest rates. These concerns are mainly driven by the weakening of the yen and its impact on inflation. Recent movements in the yen have challenged the downward trend in inflation, and one member emphasized that given the immediate priority of price stability, the bank should not spend too much time assessing the effects of rate hikes and should take the next step, a rate increase, without losing the appropriate timing. As a result, markets see a higher probability of an interest rate hike in April.