Financial Times – Colby Smith / Fed set to debate faster tightening to catch up with soaring inflation
- The Federal Reserve is this week set to discuss whether to increase the pace of its monetary tightening in the face of worsening inflation.
- The Federal Open Market Committee will convene on Tuesday for a two-day gathering just days after two economic reports suggested that price pressures have become more relentless than expected.
- Before data on Friday — which showed prices jumped another 1 per cent in May from the previous month and consumers became increasingly worried that high inflation will remain a problem for longer — the Fed had signalled it was poised to approve a second consecutive half-point rate increase. It would be the first time since 1994 that the US central bank has opted to raise rates by that amount at back-to-back meetings.
- But another move last employed in 1994 is also now likely to be under consideration: raising rates by 0.75 percentage points.
- Foreign Affairs – Gary Hufbauer, Megan Hogan and Yilin Wang / How free trade can fight inflation
The Guardian – Joan E. Greve / Top aides repeatedly told Trump fraud claims were baseless, Jan 6 panel hears
- The House select committee investigating the January 6 insurrection on Monday scrutinized the conspiracy theories that led a group of Donald Trump’s supporters to attack the US Capitol and produced damning testimony for the former US president.
- Over the course of the two-hour hearing, committee members meticulously documented how several of Trump’s senior advisers urged him not to declare victory on election night, as votes were still being counted.
- When Trump began spreading lies about widespread fraud in the election, some of his top aides, including ex-attorney general and former Trump loyalist William Barr, repeatedly told him that the claims were baseless.
- “We’ll tell the story of how Donald Trump lost an election and knew he lost an election and, as a result of his loss, decided to wage an attack on our democracy,” the Democratic chair of the committee, Mississippi congressman Bennie Thompson, said on Monday.
- The Washington Post – Aaron Blake / 4 takeaways from the second Jan. 6 committee hearing
Politico – Cristina Gallardo, Shawn Pogatchnik and Suzanne Lynch / Boris Johnson picks (another) big Brexit fight
- Boris Johnson is still “getting Brexit done” — but the EU’s patience is wearing thin. The U.K. prime minister is facing accusations the country will breach international law if his government uses a newly unveiled bill to unilaterally supersede parts of the Northern Ireland protocol that London doesn’t like.
- The protocol, introducing sanitary and customs checks on goods moving from Great Britain to Northern Ireland, was painstakingly agreed with the EU as a crucial part of the Brexit divorce deal.
- But Johnson — bruised by domestic drama and much debate over his leadership of the governing Conservative Party — is pressing ahead with proposals that have already raised hackles in the European Commission.
- Brussels is expected to give a detailed response as early as Wednesday, but swiftly made clear it’s considering dusting off legal action and reminded London that its trading relationship with the bloc depends on trust.
- The Guardian – Rowena Mason and Danie Boffey / EU poised to take legal action against UK over Northern Ireland protocol bill
Financial Times – Richard Milne / Nato chief says he had ‘no reason to believe’ Turkey would block Nordic membership
- Nato’s secretary-general insisted he had “no reason to believe” Turkey would block Finland and Sweden’s bids to join the military alliance when he promised the Nordic countries a quick accession process in April.
- Jens Stoltenberg told the Financial Times that it was still possible to overcome Ankara’s “legitimate” concerns over terrorism and arms sales “within a reasonable time”.
- The former Norwegian prime minister added: “Earlier in the process, we had no reasons to believe there would be any problems. The Turkish concerns are not new. Türkiye is an important ally, and when an ally raises security concerns, we have to address them.”
- Nato officials promised Finland and Sweden that the first stage of their Nato bid would only take one or two weeks, before Turkey raised objections over terrorism and support for the Kurds just as the two Nordic nations applied last month after Russia’s full-scale invasion of Ukraine.
- Project Syndicate – Sinan Ulgen / Why Turkey is imperiling NATO enlargement
Today’s longer reads:
- Foreign Affairs – Lawrence Freedman / Why war fails
- The Economist / Carbon-dioxide levels in the atmosphere hit another new record