On January 7, 2025, the European Union's statistical office reported a 2.4% increase in the consumer price index for the Eurozone in December compared to the same month last year. This marks an acceleration from the 2.2% rise recorded in November. The increase is attributed to a slight recovery in energy prices, which rose by 0.1% in December after a 2.0% decline in November. Service prices, tied to wages, remained high at 4.0%.
The European Central Bank (ECB) views the inflation uptick as temporary, projecting a return to the 2% price target in the latter half of the year.
In the United States, on January 6, 2025, Michael Barr, Vice Chair of the Federal Reserve Board, announced his intention to resign effective February 28. Barr has been a key figure in strengthening financial regulations, and his resignation comes ahead of the anticipated inauguration of former President Trump, who is expected to pursue regulatory rollbacks.
In his statement, Barr noted that disputes over the Vice Chair position could hinder the Fed's mission. He will continue to serve as a board member after his resignation from the Vice Chair role. Barr has been in office since July 2022, with his term originally set to last until July 2026. Reports indicate that Trump’s associates had considered removing him from the position.
Since March 2023, Barr has focused on enhancing oversight and regulation of banks, particularly in response to the failures of mid-sized banks like Silicon Valley Bank.