Category: theWorld

Powell’s Dilemma: Time to Evolve Policy

U.S. inflation has cooled from post-Covid and Russia-war peaks, but the Fed remains fixated on its 2% target. The labor market, meanwhile, is softening sharply — NFP revisions and weak hiring show mounting downside risks. Powell’s historic caution stems from the 1970s, but today’s economy is structurally different: lower energy intensity, weaker unions, globalized supply … Continue reading Powell’s Dilemma: Time to Evolve Policy →

FX reserves vs GDP: Switzerland +5,820 bps > Top 10 average

Switzerland holds significantly more reserves relative to its GDP than the peer group average (37.8% of GDP) RankCountryFX Reserves (USD Trillions)Reserves as % of GDPExchange Rate Regime1China3.45019.7%Managed Float2Japan1.29529.4%Free Float3Switzerland0.86496.0%Free Float4United States0.7732.8%Free Float5India0.62815.3%Managed Float6Russia0.59731.4%Managed Float7Taiwan0.49375.8%Managed Float8Saudi Arabia0.45841.6%Fixed Peg9South Korea0.42126.3%Free Float10Singapore0.36040.0%Managed Float 🇨🇭 Switzerland’s $864 Billion FX Reserves: Power, Risk, and Global Impact Switzerland holds $864 billion … Continue reading FX reserves vs GDP: Switzerland +5,820 bps > Top 10 average →