Key Takeaways
- White House Economic Adviser Kevin Hassett issued a scathing critique of the New York Fed, calling a recent tariff study the "worst in history" and suggesting the authors face disciplinary action.
- Japanese Prime Minister Sanae Takaichi is moving to pass a record ¥122.3 trillion ($783 billion) budget for FY 2026 while calling for urgent cooperation on a two-year suspension of the 8% food consumption tax.
- GSK (GSK) released real-world data showing its RSV vaccine, Arexvy, is 75.6% effective against hospitalizations and significantly reduces the risk of heart attacks and strokes in older adults.
- Iran and the United States have reached an agreement on a set of "guiding principles" in Geneva to advance future nuclear negotiations, though both sides caution that a final deal remains distant.
Hassett Pressures Fed, Criticizes Tariff Research
In a high-profile CNBC interview, White House National Economic Council Director Kevin Hassett asserted that there is "plenty of room" for the Federal Reserve to cut interest rates. Hassett’s comments come amid a broader administration push to align monetary policy with its pro-growth agenda, citing strong productivity gains from AI integration.
Hassett also launched an unprecedented attack on the New York Fed, labeling their recent study on the economic impact of tariffs as the "worst in the Fed's history." He argued the research failed to account for shifting supply chains and called for the authors to be "disciplined," signaling heightened tensions between the White House and the central bank’s research divisions.
Takaichi Targets Swift Budget Passage and Tax Relief
Following her recent election victory, Japanese Prime Minister Sanae Takaichi emphasized her commitment to passing the FY 2026 budget as quickly as possible. The ¥122.3 trillion spending plan is a cornerstone of her "proactive fiscal policy," which aims to stimulate the Japanese economy through targeted spending and structural reforms.
A central pillar of Takaichi’s legislative agenda is the elimination of the 8% consumption tax on food for a two-year period. She has called for immediate cross-party cooperation to finalize the tax cut, which she describes as a "long-cherished dream" to ease the cost-of-living burden on Japanese households.
GSK Reports Strong RSV Vaccine Efficacy
Pharmaceutical giant GSK (GSK) announced breakthrough real-world evidence for its RSV vaccine, Arexvy, at the RSVVW'26 conference in Rome. The study, which included over 2.5 million U.S. patients, found the vaccine was 75.6% effective against RSV-related hospitalizations in adults aged 60 and older.
Beyond respiratory protection, the data revealed that the vaccine was 63.1% effective in preventing major adverse cardiovascular events (MACE), such as heart attacks and strokes, during RSV infections. Analysts suggest these findings could significantly broaden the clinical value proposition for Arexvy, potentially driving higher uptake in the senior population.
U.S. and Iran Establish Framework for Future Talks
Iranian Foreign Minister Abbas Araghchi confirmed that indirect talks in Geneva have resulted in a preliminary framework of "guiding principles" for future negotiations with the U.S. The discussions, mediated by Oman, involved high-level U.S. representatives including Steve Witkoff and Jared Kushner.
While the agreement marks a diplomatic step forward, market observers remain cautious as significant gaps persist regarding sanctions relief and Iran's nuclear enrichment levels. Both nations have agreed to exchange draft texts in the coming weeks, but Vice President JD Vance noted that "red lines" remain that the Iranian side has yet to acknowledge.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.