The minutes of the January Federal Reserve meeting showed that officials, contrary to market expectations, were cautious about cutting interest rates, and some even suggested the possibility of a rate hike. Most policymakers believe that last year’s labor market weakness is fading, but the risk of persistent inflation remains. This approach could put the Federal Reserve at odds with Donald Trump, who has repeatedly called for rate cuts. At the same time, this situation complicates the task of Warsh, Trump’s nominee for the future chair of the central bank.

Strong wage growth in Australia has intensified the inflation challenge for the Reserve Bank of Australia. The annual wage index rose 3.4% in the quarter ending in December, while public sector wages, up 4%, grew faster than those in the private sector. The labor market remains tight and unemployment is low at 4.1%, a factor that keeps price pressures elevated. Policymakers have not ruled out another rate hike in the coming months.

Volodymyr Zelensky, the President of Ukraine, said that the results of the latest round of talks with Russia are still insufficient. He said the discussions on military issues were “important and substantive,” but political matters require further work. Zelensky also called for the next round of talks to be held in February to achieve more progress.

The Reserve Bank of New Zealand stated that it expects the country’s economy to enter a period of strong growth while inflation simultaneously moves toward the 2 percent target. The RBNZ has kept the cash rate at 2.25 percent for now and continues an accommodative policy, as the economy still has spare capacity following the 2024 recession. Officials forecast that economic growth will reach around 2.8 percent by 2027, after which gradual rate increases may be needed. According to the bank’s governor, if this outlook materializes, a gradual rate hike may begin in late 2026. Assistant Governor Karen Silk stated that monetary policy remains accommodative and the rate-cut cycle has ended.