Global Strategy: NATO, Iran, and the Fed

Defense Secretary Pete Hegseth has triggered a major rift in Brussels by launching a sweeping six-month review of American forces in Europe and demanding allies shoulder more security costs. Meanwhile, a fragile U.S.-Iran tentative peace deal has officially taken effect, slowly reopening the Strait of Hormuz and bringing down domestic energy prices despite fierce bipartisan backlash on Capitol Hill over foreign policy concessions. The ripple effects of that conflict are also being felt directly at the Federal Reserve, where newly minted Chairman Kevin Warsh asserted the central bank's independence in his highly anticipated debut decision, holding interest rates steady amidst the ongoing geopolitical uncertainty while signaling a major structural overhaul to the FOMC.