The White House (via OMB) strongly protests Congressional efforts within the FY 2027 NDAA to prohibit the purchase of warships from foreign shipyards. The Administration argues that these restrictions undermine national security by limiting flexibility and hindering its strategy of leveraging allied yards, such as in the 'Finland model,' to drive investment into U.S. shipbuilding capacity. This signals a significant policy shift toward integrating international partners into advanced naval construction, suggesting the Pentagon is prepared to bypass traditional domestic build requirements for future combat vessels.
Some Questions Congress Should Have Asked Fed Chairman Warsh
English Summary
The article critiques Fed Chairman Warsh's congressional testimony for dedicating excessive time to speculative topics like AI, while neglecting crucial questions regarding core monetary policy. Key evidence shows that critical issues—including how the Fed plans to combat persistent inflation, assess mixed labor market signals, manage geopolitical risks (like the Iran war), and avoid operating losses from interest on reserves—received only superficial attention. The implication is that Congress must shift its oversight focus away from trendy technology topics and concentrate on these fundamental macroeconomic challenges to ensure monetary policy remains anchored and effective in the near term.
中文摘要
本文批判了聯準會（Fed）主席沃什在國會的證詞，指出其過度花費時間於人工智慧（AI）等投機性議題，卻忽略了關於核心貨幣政策的關鍵問題。證據顯示，諸如聯準會如何應對持續的通膨、評估混合勞動市場訊號、管理地緣政治風險（例如伊朗戰爭），以及避免因準備金利息而產生營運虧損等重大議題，僅獲得了膚淺的關注。其潛在含義是，國會必須將監管焦點從潮流技術主題轉移開來，集中於這些根本性的宏觀經濟挑戰，以確保貨幣政策在短期內保持穩固和有效。
Related Entries
-
1.
-
2.
The Western Pacific remains a highly active theater defined by sustained U.S.-led military exercises and escalating great power competition. Key evidence includes continuous joint operations, such as RIMPAC 2026 in Hawaii and the deployment of CSGs into the South China Sea, juxtaposed with increased naval activity from both China (PLAN task groups) and Russia near Japan's critical straits. These movements underscore a strategic push by non-allied powers to assert presence and challenge regional norms. Policy implications dictate that allied nations must maintain robust multilateral cooperation and interoperability to safeguard freedom of navigation and manage escalating tensions in the Indo-Pacific.
-
3.
The article argues that the post-Cold War era of U.S. unipolarity, established by the perceived invincibility demonstrated during the Gulf War, has ended. This decline is driven by globalization and technological diffusion, which have democratized advanced military capabilities, allowing regional actors to challenge major powers. Consequently, policymakers must prepare for a more volatile international order marked by frequent crises, heightened costs for securing global trade chokepoints, and reduced predictability from American power. The new rules dictate that great powers can no longer effortlessly impose their will through force.
-
4.
The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
-
5.
Mini cities are temporary, child-run educational models—originating in Germany and Austria—that simulate real civic life by having children manage businesses, elect officials, pay taxes, and handle legal disputes. The core argument is that these hands-on experiences provide a superior learning environment compared to conventional schooling because children learn through the natural consequences of their actions rather than abstract grades. Policy implications suggest expanding this model from temporary summer programs into permanent, year-round structures that blur the line between play and real economic activity, potentially serving as a comprehensive 'launching pad' for future adult careers.