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How a swap line for Persian Gulf allies would break with the past

If the United States gets into the business of providing dollar liquidity to the United Arab Emirates and other Persian Gulf states battered by the Strait of Hormuz’s closure, it will amount to a novel use of an old power. The big picture: The Federal Reserve used swap lines with foreign central banks as a key tool to calm global financial disruptions in periods of stress, starting…

Federal Reserve chair Powell: Will he stay or will he go?

This is shaping up to be a momentous week for the Federal Reserve. What comes next for the Fed’s leadership has come into clearer focus in the last three days, but one big question hangs over the institution. The big picture: On Wednesday, the Senate Banking Committee is set to advance Kevin Warsh’s nomination to lead the Fed, after Sen. Thom Tillis (R-N.C.) indicated his…

Pennie coverage drops amid rising health care premiums

Pennsylvania’s Affordable Care Act marketplace has seen health insurance cancellations skyrocket so far this year. The big picture: Spiking insurance premiums, driven in part by recently expired federal subsidies, are pushing enrollment down, as higher costs for energy, gas and food strain household budgets. State of play: Roughly 45,000 Pennsylvanians have dropped coverage through…

130K drop Pennie coverage as costs spike

Roughly 130,000 Pennsylvanians have dropped coverage through Pennie, the state’s Affordable Care Act marketplace, in the past five months. Why it matters: About 1 in 10 Americans enrolled in an ACA plan last year now lack health coverage, per surveys by research nonprofit KFF. The big picture: Soaring insurance premiums, driven in part by recently expired federal subsidies, are…

Powerful Democratic ally outlines health care affordability plan

A leading Democratic think tank has started putting meat on the bones of a midterm health care affordability agenda, calling for policy shifts that its authors say would immediately lower costs. Why it matters: There’s a change in how Democrats are talking about health care, and it could spell big trouble for industry profits should they regain power any time soon. Driving the…

What Japan signals about the war-hit economy

The Iran war is trapping the world’s central banks with an energy shock that simultaneously undermines growth and stokes inflation, with no good policy response to either. Each of the world’s most important central banks faces that dilemma in policy meetings this week. Why it matters: From Tokyo to Washington, central banks that were on track to normalize policy are now paralyzed,…

The war outlook is the global economic outlook

To understand what the global economy will do this year, you have to understand what happens next in the Iran war. The outlook for the war and its aftermath, and what that means for the free passage of energy through the Strait of Hormuz, is the global economic outlook. That’s the uncomfortable reality hanging over the International Monetary Fund and World Bank Group spring…

The growing thirst for health insurance trustbusting

The idea of breaking up big health insurance companies has suddenly entered the political conversation, even if it faces long odds of ever actually happening. Why it matters: Politicians across the ideological spectrum are increasingly convinced that those owning multiple parts of the health care system have a big role in making medical costs unaffordable. State of play: Rep….

K-shaped economy is real, per New York Fed research

Data: Federal Reserve Bank of New York; Chart: Courtenay Brown/Axios The uncomfortable new normal for the U.S. economy: spending growth concentrated at the top of the income ladder, a split largely explained by wealth gains from financial assets. Why it matters: The K-shaped economy is real, though it is not particularly new. That’s the conclusion of research out Friday morning…

Bill would require insurers to cover infertility treatment

A newly introduced proposal in the state Legislature would require private health insurers to cover treatments for infertility, a measure backers say would eliminate a financial barrier to starting a family in Michigan. "By requiring Michigan health insurers to cover standard care fertility treatments, we can give more people a fair chance to build their…

69K NJ residents suddenly have no health insurance

High health insurance premiums that were due earlier this year caused so much sticker shock that nearly 69,000 New Jersey residents didn't pay them. Those who failed to pay their premiums, which rose considerably after federal subsides expired this year, represent 14% of the 509,192 residents who signed up for insurance by Jan. 31, said the state Department of…

Kevin Warsh’s challenges become clear after Fed chair Powell’s last hurrah

When Kevin Warsh takes over as Federal Reserve chair, he will face vocal internal opposition to any attempts to cut rates prematurely. His predecessor will also still be roaming the halls. Why it matters: Taken together, Wednesday’s news out of the William McChesney Martin Jr. Building means that Warsh will face serious constraints if he wants to rapidly steer the Fed in ways that…

Fed holds rates steady amid the most dissents in decades

The Federal Reserve left interest rates steady Wednesday in what was almost certainly Jerome Powell’s final meeting as its leader, but there were the most internal dissents at a Fed meeting in 34 years. The big picture: The surprising dissents show that Kevin Warsh, whose confirmation to lead the Fed is pending in the Senate, will face significant internal resistance to delivering…

Powell to remain as Fed governor, denying Trump a key vacancy

Federal Reserve chair Jerome Powell said on Wednesday that he will remain a central bank governor "for a period of time to be determined," citing attempted political interference. Why it matters: It extends Powell’s influence over monetary policy beyond the conclusion of his term as Fed chair on May 15. His term as one of seven Fed governors extends through January 2028. It denies…