Global monetary policy shifts toward new frameworks

Analysis of shifting global monetary frameworks suggests a transition away from quantitative easing toward a new economic era. Key indicators of this change include discussions surrounding the G20 and the role of the Financial Stability Board (FSB).

The FSB is reportedly looking to integrate artificial intelligence into the Basel Accords to establish stability within new financial rails, such as stablecoins, Bitcoin, and SOFR. There are indications that global stablecoin arrangements may take shape following a potential ‘Bretton Woods 2.0’ announcement.

Furthermore, there is a noted shift toward guiding private capital toward strategic ends rather than direct state intervention, a model supported by figures such as Scott Bessent. This approach aims to leverage the private sector to drive growth and address the overleveraging issues seen during the Global Financial Crisis.