CHINA PERSPECTIVE

The South China Morning Post publishes two articles: one on the Powell investigation closure in the context of a succession favorable to Warsh, another on DOJ decisions regarding federal executions—covering the two subjects dominating the American day. SCMP notes that dropping the investigation 'probably clears the way' for Warsh's nomination. For Beijing, which observes American credibility on the global stage, the perceived politicization of the Fed is a strategic data point: if markets begin doubting American central bank independence, it is the dollar's status as reserve currency that can be undermined—serving China's ambition to establish the renminbi as a credible alternative.