Trump Allies Target Fed Chair Powell Over Renovation Costs in Broader Push for Control

Economic

Summary:

President Trump and his allies have intensified their criticism of Federal Reserve Chair Jerome Powell, focusing on a $2.5 billion renovation of the Fed’s headquarters as potential grounds for dismissal...

Renovation Costs Spark Political Backlash

Federal Reserve Chair Jerome Powell is facing heightened scrutiny from President Trump’s administration over a multi-billion-dollar renovation of the Fed’s historic headquarters. The project, which has seen cost estimates climb from $1.9 billion in 2023 to $2.5 billion in 2025, is being portrayed by the White House and conservative allies as wasteful and disconnected from the economic concerns of everyday Americans.

Although the Fed argues that the renovations will reduce long-term costs by consolidating operations, Trump and his allies have used the project to question Powell’s leadership beyond monetary policy. The president has framed the spending as emblematic of broader mismanagement and used it to reignite his public campaign against Powell, calling for his resignation and suggesting he has failed in both fiscal oversight and interest rate strategy.

Legal and Political Strategy Behind the Criticism

The criticism appears to be part of a broader strategy to build a legal case that could justify Powell’s removal from the Federal Reserve Board of Governors. While Trump has consistently expressed dissatisfaction with Powell for resisting pressure to lower interest rates, the legal standard for dismissal defined as inefficiency, neglect of duty, or malfeasance does not allow removal based solely on policy disagreements.

By reframing the issue around alleged fiscal mismanagement, Trump officials are attempting to construct a rationale that would meet this threshold. Former Fed Governor Kevin Warsh, a possible replacement for Powell, echoed these sentiments, calling for “regime change” at the Fed and denouncing the renovation as extravagant and unaccountable.

A letter from White House budget director Russ Vought demanded detailed disclosures from Powell and criticized the Fed for being “out of touch.” Similarly, newly appointed NCPC officials, including Trump deputy chief of staff James Blair, have pledged to review the construction project for potential legal and procedural violations.

Fed Pushes Back Against Mischaracterizations

The Fed has responded by defending the project, launching a public FAQ page to address misconceptions and emphasizing its commitment to transparency and fiscal responsibility. Powell, in Senate testimony, directly refuted claims of opulence, stating that there are no luxury features such as VIP dining rooms, rooftop gardens, or beehives in the design. He acknowledged the cost overruns but attributed them to inflationary pressures and competitive bidding in key trades like mechanical and electrical systems.

Fed officials have also pointed out that the renovations are being reviewed by external architects and engineers, who have not advised that design changes require reapproval by the National Capital Planning Commission.

Power Dynamics at the Federal Reserve

Underlying this controversy is the broader battle over monetary policy. Trump has made it clear he plans to replace Powell when his chairmanship ends in May 2026 with someone more aligned with his push for lower interest rates. However, Powell’s term as a Fed governor extends through 2028. If Powell chooses to stay on after losing the chair position, he could still influence Federal Open Market Committee decisions and block Trump from filling another governor seat.

Legal experts and former Fed officials argue that Powell’s actions related to the renovation fall far short of the legal justification required for removal. They suggest the White House’s aggressive posture toward Powell reflects an attempt to manufacture a cause for dismissal that circumvents the Fed’s protected status as an independent institution.

Credibility at Stake Amid Political Interference

The intensifying focus on the Fed’s renovation has raised alarms among economists and legal scholars who view the controversy as a proxy for political interference in central banking. Columbia University professor Kathryn Judge warned that the administration’s narrative risks eroding public trust in the Fed by framing it as an elitist institution misusing public funds.

Judge also noted that if the real motivation is to force Powell out due to rate policy disagreements, then invoking the renovation as a justification undermines transparency and accountability. This could have long-term consequences for the credibility of U.S. monetary policy and the perceived independence of the Federal Reserve.

While the dispute centers on a construction project, the stakes are far greater. The confrontation marks an effort by Trump and his allies to assert greater control over the Federal Reserve, using the renovation as a political wedge. As markets watch closely for implications on rate policy and institutional integrity, the outcome could redefine the balance of power between the executive branch and America’s central bank. The months ahead will determine whether Powell’s position can withstand this pressure or whether the Fed itself will be drawn deeper into political turbulence.

Source: Bloomberg

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Economic

New Controls Signal Regulatory Shift on Sensitive Technologies

Malaysia’s Ministry of Investment, Trade and Industry (MITI) announced on Monday that it will now require trade permits for the handling of high-performance artificial intelligence chips originating from the United States. The regulation, effective immediately, covers exports, transshipments, and transit operations involving such components. Firms and individuals must notify the authorities at least 30 days in advance for items not currently listed under the country's Strategic Trade Act.

This move signals a significant step by Malaysia to tighten control over the movement of sensitive technology and reflects the growing global effort to monitor dual-use goods amid the rising geopolitical tension between the US and China. The regulation aims to plug loopholes in the country’s existing export control framework as Malaysia evaluates the addition of advanced AI chips to its strategic items list.

Pressure Mounts from Washington Over Chip Diversions to China

Malaysia’s decision follows ongoing diplomatic and regulatory pressure from the United States to block indirect flows of critical AI-related technology to China. The US government has made it a priority to prevent circumvention of export controls targeting AI chips and semiconductor technologies deemed essential to national security and military competitiveness.

The Financial Times reported earlier this year that Washington has urged Southeast Asian nations, including Malaysia, to increase oversight in response to suspicions that U.S.-designed chips have reached restricted Chinese firms via third-country re-routing. The scrutiny has intensified following investigations into suspicious technology shipments, including servers tied to a Singapore-based fraud case that may have contained advanced chips covered by U.S. export restrictions.

Legal Enforcement and Industry Implications

Malaysia’s trade ministry emphasized that any attempt to bypass export controls would face “strict legal action,” underscoring its commitment to international compliance. By requiring preemptive notification for items not explicitly listed in its strategic list, the government is creating a catch-all framework to prevent technology leakages while its strategic list is revised.

The policy will likely affect a range of businesses engaged in cross-border server assembly, chip testing, and logistics services. Malaysia, a global hub for semiconductor packaging and electronics manufacturing, plays a crucial role in the international chip supply chain, making regulatory clarity and enforcement essential for maintaining international trust.

A Proactive Response in a Tightening Geopolitical Climate

Malaysia’s move to impose a permit system for U.S.-origin AI chips represents a proactive shift in regulatory posture, aligning itself with broader Western efforts to curtail sensitive technology exports to China. The measure aims to balance Malaysia’s economic interests in remaining a global semiconductor hub with its geopolitical obligation to uphold multilateral export controls.

As Malaysia tightens enforcement and revisits its strategic goods classification, it is likely to see closer scrutiny from both its partners and affected industries. Whether this regulatory tightening is sufficient to allay Washington’s concerns will depend on how effectively Malaysia implements and enforces the new rules in the months ahead.

Source: Reuters

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Economic

Strategic Trade Concessions Aimed at Averting Heavy U.S. Tariff

Thailand’s Finance Minister and Deputy Prime Minister Pichai Chunhavajira announced on Monday that the government is evaluating a potential offer of zero tariffs on more American imports. This policy shift is part of a broader effort to ease escalating trade tensions with Washington, which has threatened to impose a 36% tariff on Thai exports if negotiations fail before the August 1 deadline.

Speaking at a business seminar in Bangkok, Minister Pichai also revealed that Thailand is preparing 200 billion baht approximately $6.1 billion in soft loans to support domestic firms and exporters who may be affected by the new U.S. tariff regime. These funds would likely be directed toward export-dependent sectors, including electronics, automotive components, and agricultural processing.

Economic Cushioning and Diplomatic Calculations

Thailand's twin-track approach pursuing both tariff concessions and domestic economic cushioning illustrates the urgency with which Bangkok is addressing the potential fallout. While the proposed tariff relief for U.S. goods may appear to tilt the trade balance in America’s favor, Thai officials may view it as a necessary move to preserve broader market access for key industries.

With the Thai economy still recovering from pandemic-related disruptions and external demand playing a central role in GDP growth, the risk of losing U.S. market share under a 36% tariff scenario is significant. The government’s soft loan package suggests an acknowledgment that even if a deal is reached, uncertainty alone could strain supply chains and financing conditions.

Avoiding Escalation Through Strategic Flexibility

As Thailand negotiates under pressure, its consideration of unilateral tariff reductions highlights a broader regional strategy of accommodating U.S. trade demands to avoid deeper economic retaliation. This mirrors the behavior of other emerging markets also targeted in President Trump’s recent tariff wave, many of which are scrambling to secure exemptions or bilateral adjustments.

The success of Thailand’s approach will depend not only on U.S. receptiveness to its offers, but also on whether such moves are sufficient to avert broader protectionist measures. With less than three weeks to go before the proposed tariffs are enacted, Thailand’s economic diplomacy is entering a critical phase. The coming days will determine whether Bangkok’s concessions lead to a reprieve or signal the beginning of more aggressive trade realignments in Southeast Asia.

Source: Reuters

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Daily News

[Quick Facts]

1. Trump proposes 200% tariffs, sending Japan's pharma industry into panic.

2. Iran warns three European Nations: Sanctions snapback could 'End' Europe's role in nuclear issue.

3. U.S. issues "Tariff Ultimatums" to EU and Mexico, allies fight back hard.

4. Timiraos: Fed independence under renewed threat, no rate cut expected this month.

5. Ukrainian lawmaker: U.S. partially resumes aid to Ukraine, but total amount slashed by 90%.

6. Trump's proposed 50% tariff on copper to include refined copper, sources say.

7. Gaza Ceasefire Talks enter critical stage after a week; Hamas warns, Israeli PM takes hardline stance.

[News Details]

Trump proposes 200% tariffs, sending Japan's pharma industry into panic

U.S. President Donald Trump has announced plans to impose tariffs as high as 200% on imported pharmaceuticals and raw materials, the highest rate among all known U.S. tariff categories. This has triggered significant alarm in Japan's pharmaceutical sector. Data shows that Japan's pharmaceutical exports to the U.S. exceeded 400 billion yen (approximately 19.65 billion Chinese Yuan) last year, accounting for 35.5% of its total pharmaceutical exports, making the U.S. Japan's largest export market for pharmaceuticals. In April, the Japan Pharmaceutical Manufacturers Association established a dedicated task force to assess the potential impact of U.S. tariff policies on the industry. The association fears that if the new tariffs take effect, Japanese pharmaceutical companies could face steep profit declines, forcing them to slash R&D budgets. This, in turn, could delay new drug development projects and have long-term repercussions across the supply chain.

Iran warns three European Nations: Sanctions snapback could 'End' Europe's role in nuclear issue

On July 12th, the European Press reported that Iranian Foreign Minister Abbas Araghchi issued a warning to the three European powers (Germany, France, and the UK) involved in the currently suspended Iran nuclear talks: if these countries reinstate sanctions on Iran, they will automatically be excluded from any future dialogue on the issue. He stated that a so-called snapback of UN sanctions could end Europe's role in the issue of Tehran's nuclear program.

U.S. issues "Tariff Ultimatums" to EU and Mexico, allies fight back hard

On July 12th, U.S. President Donald Trump sent two tariff threat letters, announcing 30% tariffs on imports from the EU and Mexico starting August 1st. The EU, the U.S.'s largest trading partner, immediately vowed to retaliate if necessary. With this move, Trump has now imposed tariff conditions on 24 countries and all 27 EU member states. Analysts warn that the trade turmoil sparked by these measures will ultimately be paid for by U.S. consumers.

Timiraos: Fed independence under renewed threat, no rate cut expected this month

Nick Timiraos wrote in a recent article that the dispute over building renovations has emboldened a faction within the Trump administration that has long sought to challenge the Federal Reserve's independence. Treasury Secretary Bessent and other economic advisors generally advocate preserving the Fed's autonomy. For instance, Bessent recently declined to criticize Trump over the renovation issue in a Fox Business interview. However, other advisors and external allies have been exploring legal avenues to remove Powell since before the election.

In testimony last month, Powell stated, "No one wants to do a major renovation of a historic building during their term in office. Much prefer to leave that to your successors, and this is a great example why – let alone two historic buildings." Previously, Trump had pushed for broader interest rate cuts to reduce government borrowing costs. The Fed is not expected to cut rates at its upcoming meeting later this month, but Powell has hinted at potential cuts later this year if inflation remains stable or the labor market weakens. Trump aims to lower the federal deficit's debt servicing costs, though his tax cuts may widen the deficit. Outside extreme circumstances like war, central banks in developed economies resist such pressures, believing stable inflation is crucial to maintaining confidence in their currencies.

Ukrainian lawmaker: U.S. partially resumes aid to Ukraine, but total amount slashed by 90%

Ukrainian lawmaker Oleksandr Dubinsky (currently detained in a pre-trial detention center on treason charges) revealed in an interview that the U.S. has allocated only 300 million (less than 10% of the agreed 3.8 billion). In a Telegram post, Dubinsky stated: "Look at how the 'victory' of US military aid works. First, cutting off aid forced Zelensky to accept America's views on further negotiations with Russia. After receiving the relevant signals, $300 million in aid was unfrozen, while the total amount of military aid previously agreed upon was $3.8 billion." The lawmaker noted that the restored aid amounts to less than 10% of the potential total, effectively a 90% reduction.

Trump's proposed 50% tariff on copper to include refined copper, sources say

U.S. President Donald Trump’s plan to impose a 50% tariff on copper imports will cover all refined copper, signaling broad measures to boost U.S. production of the widely used material. Trump announced the tariffs would take effect on August 1st but provided few details. However, sources familiar with the matter, who requested anonymity due to private discussions, confirmed refined copper will be included.

Gaza Ceasefire Talks enter critical stage after a week; Hamas warns, Israeli PM takes hardline stance

As of July 13, the latest round of Gaza ceasefire talks in Doha, Qatar, has entered its seventh day. Amid ongoing Israeli military operations and heavy civilian casualties in Gaza, conflicting statements emerged from the warring parties and the U.S. Hamas described negotiations as reaching a "critical stage," while Israel's prime minister vowed not to abandon any objectives. The U.S. Middle East envoy expressed optimism, but whether the talks will end the current conflict remains uncertain.

[Today's Focus]

UTC+8 15:30 ECB Governing Council Member Vujcic Delivers Speech

Pending U.S. President Trump Plans to Make "Major Announcement" on Russia

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Economic

Stocks

Futures Slip as Trade Concerns Collide with Earnings Season

US equity futures opened the week under pressure, as a combination of geopolitical friction and corporate earnings uncertainty unsettled investor sentiment. Dow futures dropped by roughly 0.4%, with the S&P 500 and Nasdaq 100 futures following suit, each slipping around 0.4%. The modest decline reflects growing investor nervousness ahead of a packed economic and earnings calendar.

The immediate catalyst for this retreat was President Donald Trump’s weekend declaration that the US will impose 30% tariffs on imports from the European Union and Mexico beginning August 1. These measures arrive on top of existing inflationary concerns and threaten to disrupt transatlantic and North American trade flows. Officials from both the EU and Mexico have expressed willingness to continue negotiations, but markets are now pricing in the risk that these tariffs will materialize in full.

Market Weakness Follows Break in Winning Streak

Sunday’s futures downturn comes on the heels of a losing week for Wall Street, with all three major indexes the S&P 500, Nasdaq, and Dow ending their three-week winning streaks. While the broader indexes remain close to all-time highs, momentum appears to be faltering as policy risk resurfaces and economic signals become increasingly mixed.

The timing of the tariff escalation also coincides with heightened anticipation around June’s Consumer Price Index (CPI) data. Investors will be scrutinizing inflation figures for clues on how past rounds of tariffs are flowing through to consumer prices. Elevated readings may complicate the Federal Reserve’s path toward potential rate cuts, with the next policy decision expected in just over two weeks.

Political Interference Clouds Monetary Outlook

Markets are also contending with the renewed tension between the White House and the Federal Reserve. National Economic Council Director Kevin Hassett stated over the weekend that President Trump could remove Fed Chair Jerome Powell “if there’s cause,” intensifying speculation about the independence of the central bank. Such public pressure on the Fed adds another layer of uncertainty for investors attempting to forecast interest rate policy amid already fragile market conditions.

Amid this volatile backdrop, the second-quarter earnings season begins in earnest. Major US banks are first in line to report, including Wells Fargo, which recently emerged from a decade of strict regulatory oversight. Investors are also closely watching M&A activity and IPO performance, which could offer insight into broader capital market health.

Key tech and consumer giants will also be in focus. Netflix will kick off earnings for US tech firms, while Taiwan Semiconductor and ASML are expected to provide updates on the AI-driven semiconductor boom. PepsiCo, United Airlines, and American Express are among the other high-profile names reporting this week, with analysts looking for signs of resilience in consumer spending and corporate margins.

The convergence of escalating trade barriers, inflation concerns, central bank uncertainty, and critical earnings reports presents a complex challenge for markets this week. Investors appear cautious but not panicked, with futures falling modestly in response to the evolving risk landscape. The degree to which Trump’s tariffs are enforced, the clarity provided by CPI data, and the strength of corporate earnings will collectively shape whether markets regain upward momentum or shift into a more defensive posture in the weeks ahead.

Source: Yahoo Finance

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Liam Peterson

Japan's central bank may face political pressure to keep interest rates low for longer than it wants, as opposition parties favouring tax cuts and loose monetary policy are expected to gain influence after a July 20 election.

Opinion surveys suggest Prime Minister Shigeru Ishiba's coalition may lose its majority in the upper house of parliament, forcing it to court an array of smaller parties pushing for easier fiscal and monetary policy.

The governing bloc led by Ishiba's Liberal Democratic Party is already a minority in the more powerful lower house, so a stalemate in both chambers could give opposition parties outsized influence in policy decisions.

Ishiba has supported the Bank of Japan's policy of gradually lifting interest rates from near zero as inflation picks up in the world's fourth-biggest economy, while trying to curb the biggest government debt burden in the industrial world.

But if opposition groups gain traction with their pressure on the BOJ to avoid rate hikes and for the government to cut the sales tax, that could boost bond yields and complicate the bank's efforts to normalise monetary policy, some analysts say.

The BOJ declined to comment on the potential impact of the election on monetary policy.

"There's a 50% chance the ruling coalition could lose its majority in the upper house, which could lead to increased debate about cutting Japan's consumption tax rate," said Daiju Aoki, chief Japan economist at UBS SuMi Trust Wealth Management.

"That would push up Japan's long-term interest rates by stoking concern over the country's finances," he said.

DEBT SET TO RISE

Sohei Kamiya, head of the upstart right-wing party Sanseito, has criticised the BOJ for slowing its bond buying when the economy remains weak.

"The Ministry of Finance and BOJ should work hand in hand in taking aggressive steps for a few years to boost domestic demand," Kamiya told a press conference this month.

Another small group, the Japan Innovation Party, wants the BOJ to go slow in raising rates to restrain the cost of interest on the government's debt.

Yuichiro Tamaki, head of the Democratic Party for the People, a party seen as a strong candidate to join Ishiba's coalition, has urged the BOJ to loosen, not tighten, monetary policy to keep the yen from rising and hurting the export-reliant economy.

Even if the coalition keeps its majority, Ishiba may need to ditch his hawkish fiscal tilt and boost spending to cushion the economic blow from threatened U.S. tariffs and rising costs of living.

"There's a good chance the government will compile an extra budget to fund another spending package to the tune of 5 to 10 trillion yen ($35 billion-$70 billion). That would push up bond yields further," said former BOJ board member Makoto Sakurai, who expects the central bank to avoid raising rates at least until March.

Japan's public debt is equal to 250% of gross domestic product, far above that of Greece at 165%. The government spends nearly a quarter of its budget to finance a 1,164-trillion-yen ($7.9-trillion) debt pile, with the cost expected to rise steadily as the BOJ exits zero-interest rates.

'NEED TO BRACE'

To be sure, inflation - above the BOJ's 2% target for three years - boosts nominal tax revenues, which can help the government avoid ramping up bond issuance to fund further spending.

But cutting the sales tax rate, an idea Ishiba has ruled out for now, would leave a bigger hole in Japan's finances. Once a fringe idea, cutting the 10% sales tax is now among Japan's most popular economic policy proposals.

In a recent poll by the Asahi newspaper 68% of voters thought a sales tax cut was the best way to cushion the blow from rising living costs, compared with 18% who preferred cash payouts.

If the sales tax is on the chopping block after the election, it is the kind of vital issue that could prod Ishiba to dissolve the lower house and call a snap election - a move that would prolong political uncertainty.

If Ishiba were to step down, an LDP race to replace him could revive market attention to candidates like Sanae Takaichi, an advocate of aggressive monetary easing whom Ishiba narrowly beat in the party's leadership race last year.

Unlike Ishiba, who gave a quiet nod to BOJ policy normalisation, Takaichi has said it would be "stupid" for the central bank to raise rates.

All this would mean the BOJ's rate hikes, already on pause due to uncertainty over U.S. tariffs, could be put on hold even longer.

"We may need to brace for a long period of political uncertainty and market volatility," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

"That would just give the BOJ another reason to sit on the sidelines and wait for the dust to settle."

Source: Reuters

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Economic

Active Management Gains Traction in a Fragmented Market

In a world of rising economic fragmentation and unpredictable market cycles, sovereign wealth funds are showing a clear shift in asset allocation strategy. According to the 2025 Invesco Global Sovereign Asset Management Study, large institutional investors particularly those overseeing more than $100 billion are increasingly turning to active management to better manage volatility and exploit selective opportunities. This move contrasts with the previous era of stability, during which passive strategies dominated due to their cost efficiency and market predictability.

Rod Ringrow, Invesco’s head of official institutions, underscored that the decline of “predictable” markets has forced funds to become more tactical. The move to active management is framed not as a temporary adjustment, but as a long-term recalibration in response to structural shifts, including inflation volatility, geopolitical risk, and policy uncertainty.

Wealth funds generated average returns of 9.4% in 2024, marking their joint second-best performance in the survey’s history. However, this outperformance does not appear to have diminished concerns about future challenges, including rising sovereign debt burdens and climate change risks over a 10-year horizon.

Dollar Still Dominates, But Long-Term Confidence Slips

Despite their evolving portfolio strategies, central banks remain cautious on currency diversification. While over 70% of the 58 central banks surveyed expressed concern about the long-term impact of growing US debt on the dollar, most remain skeptical that a credible alternative will emerge soon. Nearly 80% believe it would take more than two decades for another reserve currency to rival the greenback a notable increase from 58% just a year ago.

This cautious consensus suggests that while the dollar's long-term dominance is under scrutiny, the lack of viable alternatives, such as the euro or yuan, continues to anchor it as the global reserve standard. Only 11% of respondents viewed the euro as gaining momentum, compared to 20% last year, pointing to fading confidence in Europe’s ability to expand its influence in reserve portfolios.

Chinese Innovation Drives Strategic Investment Urgency

Perhaps the most striking finding from the survey is the growing enthusiasm among sovereign wealth funds for Chinese assets, particularly in innovation-led sectors. Nearly 60% of respondents intend to increase exposure to China over the next five years, with the number climbing to 73% among North American funds despite escalating tensions between the US and China.

This signals a reconfiguration of long-term portfolio strategies, where Chinese technology sectors such as artificial intelligence, semiconductors, cloud computing, electric vehicles, and green energy are now viewed with the same strategic urgency once reserved for Silicon Valley.

Ringrow attributed the trend to a sense of “FOMO” or fear of missing out, driven by China’s rapid technological progress and its positioning as a critical engine of future innovation. By contrast, only 13% of European funds expressed intentions to increase allocations to China, indicating regional disparities in risk appetite and geopolitical tolerance.

Private Credit and Digital Assets Emerge as New Frontiers

In the quest for income resilience and diversification, sovereign wealth funds are expanding into private credit. The proportion of funds allocating to this asset class has risen from 65% to 73% year-over-year, with half of them actively increasing their positions. The report highlights private credit as one of the most decisive and consistent trends in sovereign allocation strategies, driven by higher yields and lower correlation with public markets.

Simultaneously, digital assets are carving out a role in reserve management, particularly among emerging market wealth funds. While Bitcoin remains the most commonly considered asset, with 75% of respondents expressing interest, nearly half now also view stablecoins typically pegged to the US dollar as a viable investment vehicle. This marks a cautious but growing exploration of blockchain-based financial instruments within sovereign portfolios, particularly for liquidity and hedging use cases.

Strategic Realignment Amid Volatility

The 2025 Invesco report illustrates a significant strategic pivot among sovereign wealth funds and central banks toward active management, China-centric investment themes, and alternative asset classes. While the US dollar remains dominant, there is a widening recognition of its vulnerabilities. Meanwhile, the embrace of Chinese tech and private credit reflects a shift toward sectors and strategies deemed better suited to a more volatile and fragmented global landscape.

As uncertainty deepens around fiscal sustainability, inflation trajectories, and geopolitical realignments, these funds are reshaping their approach not to chase returns, but to fortify resilience. The next few years will determine whether these recalibrations serve as successful hedges against the seismic shifts currently defining the global financial order.