Thomas Barkin, President of the Federal Reserve Bank of Richmond, said last year’s interest rate cuts helped support the labor market. He emphasized that bringing inflation back to the 2 percent target will require further effort. Barkin noted that while economic trends remain positive, job growth is concentrated in a few sectors and inflation remains above the central bank’s target.

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.

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.

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.