The air in the Federal Reserve’s headquarters is thick with a disquiet not seen in decades. For months, whispers of stagflation – that dreaded combination of economic stagnation and relentless inflation – were dismissed as the fever dreams of pessimists. Now, the central bank itself has broken the silence, acknowledging that the threat is not only real but rapidly materializing. This admission, delivered with unusual candor by Fed Chairman Jerome Powell this week, has sent...

The Financial Stability Council (FSC/Council) met on 8 May 2025 to discuss the prevailing state and outlook of financial stability, including related risks emanating from the domestic and global environments as well as appropriate policy responses to avert the buildup of vulnerabilities. Members also deliberated on prospective developments affecting the financial sector and ongoing FSC work programme. These include harmonisation of corporate governance principles, and enhancement of resolution and crisis management frameworks for the financial...