Economy House

• Federal Reserve Chair Kevin Warsh is testifying before the House Financial Services Committee on Tuesday morning regarding the current state of the U.S. economy. • The hearing serves as a critical briefing for lawmakers to assess economic stability and the Federal Reserve's current monetary policy direction. • This appearance is particularly significant as it coincides with the economic agenda and appointments overseen by President Trump.

• The ongoing conflict between Israel and the US-Iran axis has disrupted oil and gas supplies across the Middle East. • These disruptions are driving energy price increases, which may lead to higher inflation and reduced GDP growth within the UK. • The severity of the economic shock depends largely on overseas geopolitical decisions and the resulting stability of global energy markets.

• The House of Commons Library reported that UK government borrowing for the 2025/26 financial year totaled £129 billion. • This figure represents a decrease of £23 billion compared to the borrowing levels recorded in the 2024/25 financial year. • These statistics serve as critical economic indicators for analyzing the UK's fiscal health and international standing.

• The House of Commons Library released an analysis of the latest UK and international economic indicators. • Government borrowing for the 2025/26 financial year was recorded at £132 billion. • This figure represents a £20 billion decrease in borrowing compared to the 2024/25 financial year.