The FSB’s 2024 AI report identified several vulnerabilities, including third-party dependencies, market correlations, cyber risks, and challenges in model risk and governance, which may have implications for financial stability

Since the FSB’s 2024 report on the financial stability implications of artificial intelligence (AI), there have been significant developments in the AI ecosystem. These include advancements in AI models, new companies offering more flexible options, more competition in hardware, and global technology providers controlling more parts of the AI supply chain. These developments underscore the importance of robust monitoring efforts and fostering collaboration to address potential vulnerabilities to financial stability effectively. Such efforts are essential to fully harness the potential benefits of AI, including enhanced efficiency, improved regulatory compliance, advanced data analytics, and the creation of more personalised financial products.
The report examines the monitoring approaches currently used by member jurisdictions. It outlines key considerations and potential indicators for tracking AI adoption and associated vulnerabilities. It also includes a case study focusing on monitoring AI-related third-party dependencies and service provider concentration. The report provides high-level considerations to enhance monitoring and address data gaps.

View full report here.
 
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By Agostino Consolo, António Dias da Silva, Maarten Dossche and Marco Weißler
Do European workers see US tariff hikes as a threat to their job security? According to an ECB survey, while most workers are fairly relaxed, those in export-oriented sectors and those with lower incomes are more worried about their jobs than before the tariff increase.

Trade tariffs between the euro area and the United States increased significantly this year.[1] These tariffs increase the price of goods produced in Europe for customers in the United States. They are likely to reduce demand for European goods and prompt some firms on our side of the Atlantic to scale down their operations and workforce. This means that trade tensions could become a job killer for the euro area.
The ECB Consumer Expectations Survey asked all employed respondents in July how the recent US trade tariff announcements have affected the likelihood that they would lose their current job. This blog post examines how workers perceive the impact of tariff increases on their job security. The findings are valuable information for our understanding of the labour market, and ultimately also household spending. The lower the perceived job security, the greater the likelihood that workers will put money aside and reduce their consumption.[2]
Most workers are not more worried than before
Tariffs work like taxes by increasing the prices of imported goods. This applies both to goods used by US firms for their production, such as car parts, and the goods consumers buy directly, such as pharmaceuticals. Tariffs therefore make products from outside the United States more expensive and less competitive on the US market. As a result, firms and consumers might switch to other producers and demand fewer European goods (see also this edition of The ECB Blog). European firms that export a considerable amount of their goods to the United States might in turn then decide to reduce their workforce. In this way, tariffs can affect the job security of European workers.
Despite these potential risks, most European workers aren’t too worried. On average, most do not consider their job stability to be affected by US tariffs (see Chart 1). We asked them: “Considering the sector you work in, how have the US tariff announcements affected the chance that you will lose your job?” In fact, 85% of all workers report unchanged or even lower job loss expectations following the increase in US tariffs. This might be because their employers would not be directly affected by a lower demand from US consumers. However, the picture is different for about 15% of workers. This group does perceive a higher probability of job loss, with 3% even stating that the chance of losing their jobs had increased a lot.

Chart 1
Expectations of job loss following the US tariff announcements

(percentages)

Source: ECB Consumer Expectations Survey (CES).
Note: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?”.

Workers in export-oriented sectors are more worried
Workers in countries and sectors that export more to the United States perceive a higher job risk. However, firms with direct US business relations are less prominent than one might naturally assume. According to European Commission calculations the share of firms and jobs directly linked to US exports ranges from just above 1% in Greece to 6.7% in Ireland (see Chart 2). We compare this to the net percentage of workers perceiving an increase in their job loss expectations relative to workers perceiving a decrease.[3] Unsurprisingly, the share of workers more afraid of job loss is higher in countries in which the workforce is more exposed to US exports, such as Ireland.

Chart 2
Share of jobs exposed to US exports and share of workers expecting a higher job loss risk by country

(percentages and net percentages)

Sources: ECB Consumer Expectations Survey (CES) and Quarterly review of employment and social development in Europe (European Commission).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?”. Net percentages are a weighted difference of the share of workers replying that they expect their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”. The share of jobs exposed to US exports is estimated based on the available data in the European Commission’s publication.

Taking an even closer look, we see that workers in more trade-oriented and cyclical sectors – currently under pressure of other shocks such as high energy prices – are more likely to perceive an increasing risk of job loss following the increase in US tariffs. Specifically, workers in industry, construction or trade feel more negatively affected by those tariffs (see Chart 3). These sectors are either more reliant on US exports or generally more prone to upswings and downswings. By contrast, workers in the public or health sectors do not usually sell their services to US customers. Demand for their services is also largely independent of overall economic conditions. Accordingly, the CES results show that workers in these sectors are much less concerned about their jobs following the tariff hikes. Workers in the financial services and ICT sectors are also more exposed to US tariffs and report higher job fears. This is especially the case for workers in Ireland and the Netherlands, which host the European headquarters for many US firms and are very open economies.[4] This means that workers in these countries are more vulnerable to stricter trade policies.

Chart 3
Change in job loss expectations in response to US tariffs by sector

(net percentages)

Source: ECB Consumer Expectations Survey (CES).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?” Net percentages are a weighted difference of the share of workers replying that they expect their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”.

Additionally, low-income workers feel more at risk than their peers – especially in goods producing sectors. This is mostly due to their stronger exposure to the manufacturing sector, where tariffs have a more negative impact. However, deteriorating job prospects can also worsen the economic outlook for others, as workers who expect to lose their jobs reduce their spending as a precaution. We can observe this in the euro area: in particular, low-income households have reduced their spending on discretionary goods in expectation of a worsening economic situation and higher prices (see this recent ECB Economic Bulletin box). This may lead to lower demand and further worsen the labour market situation – including for firms and workers not directly affected by US tariffs.

Chart 4
Change in job loss expectations in response to US tariffs by income and sector

(net percentages)

Source: ECB Consumer Expectations Survey (CES).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?” Net percentages are a weighted difference of the share of workers replying that they expected their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”. Income is measured in quintiles.

Workers generally perceive that the sharp increase in tariffs on euro area exports to the United States is unlikely to affect their jobs. This seems reasonable, since most jobs are not directly exposed to US exports, and firms have other options for coping with tariff hikes beyond cutting employment. Nonetheless, some workers in more exposed sectors reported an increase in their job loss expectations. This matters when it comes to assessing the broader economic consequences of tariffs. Past research shows that workers who expect to lose their jobs are more likely to actually lose them later. Hence, while the direct impact of US tariffs on jobs appears to be limited, their impact on some workers can be stronger and might add further drag to firm and consumer confidence.
The views expressed in each blog entry are those of the author(s) and do not necessarily represent the views of the European Central Bank and the Eurosystem.
Check out The ECB Blog and subscribe for future posts.
For topics relating to banking supervision, why not have a look at The Supervision Blog?

On 27 July 2025 the European Union and the US agreed on a new tariff ceiling of 15%. While for many goods higher tariff levels were announced in early April, the new ceiling is much higher than the average tariffs that prevailed previously. As the survey fieldwork largely took place before the announcement of the agreement at the end of July, repeating this question in the future would allow us to see if workers have changed their assessment since.
Dias da Silva, A., Rusinova, D. and Weissler, M. (2025), Consumption effects of job loss expectations: new evidence for the euro area. European Economic Review 179.
Workers replying that they expect their job loss probability to “increase/decrease a little” are weighted by 0.5, while those replying that they expect their job loss probability to “increase/decrease a lot” are weighted by 1.
ICC Open Market Index 2017

 
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From today, sending money across the euro area will be faster and safer than ever. Thanks to new EU rules on instant payments, people and businesses can now transfer money in euro within seconds, anytime – day or night, weekdays or weekends – whether within their own country or across the euro area.
Since January 2025, payment service providers (PSPs) in the euro area are obliged to offer their clients the possibility to receive euro instant payments. As of today, PSPs are also obliged to offer their clients the service of sending instant payments in euro and, in order to combat payment fraud in euro credit transfers, the service of payee verification (VoP). This makes instant payments more widely available, safer, and more affordable for everyone across the euro area.
Instant payments will boost Europe’s economy and bring major benefits for citizens and companies. For citizens, money is available immediately, making it far easier to deal with emergencies or splitting bills in social settings. For companies, cash flow management will be improved, as will customer service: by providing an additional payment method to customers, they will save time and reduce costs.
What changes: 
• Money moves instantly: Transfers in euro will no longer take days – they will reach the recipient’s account in seconds, at all times – nights, weekends and holidays included.
• Same price as regular transfers: Banks and other payment service providers must not charge more for an instant payment than for a standard credit transfer.
• Stronger protection against fraud and errors: Before a payment is made, providers must verify whether the name of payee (or recipient) matches the IBAN provided, helping people avoid mistakes and scams. This service shall be provided free of charge to the payer.
• Lower costs to process payments: New rules also enable payment and e-money institutions to directly participate in payment systems, so they can provide their payment services, including instant payments, more efficiently.
Next steps
From January 2027, payment service providers outside the euro area will also be required to allow their clients to send and receive instant payments in euro and verify the beneficiary.
The Commission will closely monitor how charges for instant payments evolve and whether there are any other outstanding obstacles to the availability and use of instant payments, and will report to the EU co-legislators to ensure that they remain affordable and accessible. 
Background
The Instant Payments Regulation (March 2024) updates the 2012 rules on euro credit transfers to reflect technological progress and the needs of citizens and businesses today.
The rules have been rolled out gradually to ensure a smooth transition for payment service providers. Since 9 January 2025, PSPs in the euro area are prohibited from charging higher fees for instant payments than those applicable to regular transfers. Additionally, providers that do not yet offer instant payments in euro have had to make it possible for their clients to receive them.
 
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BRUSSELS, October 8, 2025 – The European Commission, in line with its Global Gateway investment strategy, and the World Bank Group are deepening their strategic partnership to drive a new generation of connectivity projects. An initial pipeline of projects includes 18 high-impact investments in three strategic sectors (energy, transport, and digital infrastructure) across Africa, Asia and the Pacific, and Latin America and the Caribbean.
The collaboration, which will include regular high-level engagement and progress updates, is designed to ensure that projects move not only from pipeline to financing, but from financing to jobs, services, and results. The announcement was made in the margins of the Global Gateway Forum that takes place on 9 and 10 October in Brussels.
World Bank Group President Ajay Banga said: “Creating jobs is a strategic choice. Jobs created in emerging economies expand local opportunity while fuelling global demand. That’s why this partnership matters. Together, the European Commission and the World Bank Group can align investments, unlock private capital, and deliver results at a scale neither could reach alone.”
European Commission President Ursula von der Leyen said: “Today, we are taking our partnership with the World Bank to the next level. This new framework will guide how we steer, govern, and monitor joint projects in the areas like energy, transport, and digital infrastructure. This will make sure that Global Gateway’s strategic investments, hand in hand with the World Bank Group’s capacity to deliver reforms, can crowd in maximum private capital.”
This partnership has objectives to create local jobs and drive sustainable economic growth, with a focus on building vibrant private sectors that create opportunity for local communities, especially in countries with abundant natural resources and large youth populations.
It advances the three pillars of the World Bank Group’s job creation strategy: investing in human and physical foundations like education, healthcare, roads, ports, and electricity;fostering business-friendly environments with clear laws, predictable taxes, and transparent institutions; and supporting the private sector with capital, guarantees, and risk insurance.
It also complements a unique feature of the Global Gateway: in addition to investment in hard infrastructure for the long term built to the highest quality and environmental standards, Team Europe also provides regulatory support, skill development, training, research, and investment in local jobs and companies.
The 18 initial projects were chosen for their alignment with Global Gateway and World Bank Group priorities, along with their proven ability to scale, potential to attract private capital, and expected impact on jobs creation, productivity, and regional integration.
Global Gateway
Global Gateway is the EU’s external investment strategy to build smart, clean, and secure connections in the digital, energy, and transport sectors, as well as strengthen health, education and research systems globally. It fits the current geopolitical context by nurturing equal partnerships that increase strategic autonomy and resilience of Europe and partner countries alike. It is an attractive offer thanks to its sustainable investments. It is the EU’s contribution to the Sustainable Development Goals beyond its borders.
 
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Funding Cuts Puts More Than 1,000 Jobs At Risk, State To Take Total Economic Hit of $650 Million
Governor Calls On Washington Republicans To Restore Funding and Stop Playing Politics With New York Jobs and Businesses

Governor Kathy Hochul today highlighted a list of federal funding cuts, released by Congress, that outlines grants terminated by the Trump administration through the Department of Energy. Last week, the White House announced that it was going to abruptly terminate nearly $500 million in clean energy grant funding to factories and other businesses across New York. These cuts will risk more than 1,000 good-paying jobs and harm economic growth in regions across the state, with an estimated statewide economic hit of $650 million. With the cancellation of these projects, communities will suffer and families will go without paychecks, including those in the very districts whose Congressional representatives continue to greenlight reckless cuts out of Washington.
“Donald Trump and his Republican allies in Congress are playing politics with the government shutdown, and New York’s economy and hard-working families are paying the price,” Governor Hochul said. “These cuts directly impact local businesses and major companies, putting workers out of jobs, shuttering factories, and slowing our state’s economic progress. New York Republicans should grow a spine, stand with our workers and demand that President Trump restore this funding.”
Projects earmarked for termination across New York State based on numbers provided by the House Committee on Appropriations:

Region
Recipient Name
Award Amount

WNY
CleanFiber Inc.
$10,000,000

WNY
Jamestown Board of Public Utilities
$17,000,000

WNY
Research Foundation for the State University of New York
$2,279,996

Mid-Hudson
Urban Mining Industries, LLC
$37,117,830

Mid-Hudson
Urban Electric Power Incorporated
$6,500,000

Mid-Hudson
International Business Machines Corporation
$19,736,446

CNY
BITZER Scroll Inc.
$5,005,252

CNY
American Institute of Chemical Engineers
$36,525,625

Finger Lakes
Ionomr Innovations Inc.
$4,969,022

Finger Lakes
Plug Power Inc.
$70,877,654

NYC
Hearth Labs Solutions Inc.
$1,299,971

Southern Tier
Dimensional Energy Inc.
$2,053,837

Southern Tier
Cornell University
$7,543,866

Southern Tier
Ecolectro Inc.
$3,600,000

Capital Region
General Electric Company
$18,216,514

Capital Region
GE Vernova Operations, LLC
$44,254,145

Capital Region
New York State Energy Research and Development Authority
$21,500,000

Capital Region
Plug Power Inc.
$76,462,353

Capital Region
Interstate Renewable Energy Council Inc.
$12,968,170

Capital Region
Rensselaer Polytechnic Institute
$1,499,962

NYC
it’s electric Inc.
$1,475,000

NYC
The Trustees of Columbia University in the City of New York
$1,620,000

NYC
New York City and Lower Hudson Valley Clean Communities, Inc.
$1,669,973

NYC
American Institute of Chemical Engineers
$43,140,625

NYC
NYC Department of Environmental Protection
$1,471,264

 
Empire State Development President, CEO, and Commissioner Hope Knight said, “These federal cuts are shutting down projects already underway, and will stifle New York’s clean energy economy while killing good paying jobs. Communities that were on the brink of transformative growth will now face stalled investments and lost paychecks, as New York’s progress toward a sustainable future stalls. Governor Hochul continues to stand up and speak out for New Yorkers, and the businesses looking to drive economic growth in the 21st century.”
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “These federal funding cuts put thousands of good-paying jobs at risk while harming the momentum of New York’s clean energy industry by creating further uncertainty for the organizations and businesses that need stability to plan, invest, and grow here. Once again, short-sighted political games at the federal level will undermine innovation and progress in one of the fastest growing sectors of our economy.”
Senator Charles Schumer said, “Donald Trump’s rash actions will hike energy costs for New Yorkers and waste hundreds of millions in investment by wiping out projects already underway in his reckless campaign of chaos & revenge. This goes beyond targeting blue states. It is taking a wrecking ball to working families’ lives from Jamestown to Rockland County, putting countless construction workers out of jobs and raising families’ electric bills just to score petty political points. NY House Republicans’ silence — as Trump rips away billions of sound investment and thousands of good-paying jobs from their backyard — is deafening. Instead of playing politics with the shutdown, President Trump should be working on bipartisan solutions to lower Americans’ costs, boost diverse energy supply, and create jobs.”
Senator Kirsten Gillibrand said, “Clean energy is the way of the future for a healthier and more affordable New York State. These Trump administration cuts will have devastating consequences for New Yorkers’ quality of life, the state’s economy, and the overall wellbeing of our communities. I am deeply disappointed in my Republican colleagues who are turning their backs to their constituents by supporting these funding cuts.”
Representative Jerrold Nadler said, “Trump has brazenly cut half a billion dollars in clean energy funding, and my Republican colleagues lack the spine to stand up to him. We will not let Donald Trump’s personal campaign of retribution against our city and state continue down this reckless path. This careless decision will have detrimental consequences; if New York’s economy gets hit, the entire country will feel it, thousands of good paying jobs will be lost, and hard-working families will go without paychecks. These cuts must be reversed immediately, and I hope my Republican colleagues will join me in calling on Trump to give New York our already approved funding back.”
Representative Nydia M. Velázquez said, “These cuts are a direct attack on New Yorkers and our clean energy future. These grants create good jobs, grow our economy, and move our state toward sustainability. Stripping away this funding threatens workers in my district and across the state and undermines the progress our communities have fought to achieve. New York Republicans need to stand with their constituents instead of standing by while this administration puts New Yorkers’ livelihoods on the line.”
Representative Yvette D. Clarke said, “At a time when Trump’s devastating cuts risk undermining the economic stability of communities across New York, our neighbors statewide are pleading with their Republican representatives to stand up for them, their families, and their futures – but they’ve heard nothing back but betrayal. New York Republicans are running out of time to figure out if they serve the people who put them in Congress, or the corrupt president who will toss them aside the instant they’re no longer useful. I stand with Governor Hochul and the people of our state in demanding my Republican colleagues make the right choice by, at long last, putting New York first.”
Representative Grace Meng said, “We should always be working to promote jobs and economic growth in our state and that includes New York’s clean energy sector. I have spoken out against cuts made by the administration that harm our local communities, and I will continue to do so. New York deserves to receive all the resources we require.”
Representative Adriano Espaillat said, “From the rising costs of groceries, utilities, and housing, affordability is among the highest concerns facing New Yorkers and their families. Yet, the Trump administration has failed to work collaboratively to find solutions that would provide families the much needed relief they deserve. Rather than focusing on solutions to curb these ballooning costs, the administration has canceled critical projects and programs that communities rely on. We will stand firm to combat the administration’s ineffective and dangerous policies that threaten the livelihoods and wellbeing of New York families and we will hold them accountable.”
Representative Paul Tonko said, “Instead of working in a bipartisan fashion to advance our state’s growing 21st century economy, Donald Trump and his Republican allies in Congress have chosen to unilaterally terminate hundreds of millions of dollars in clean energy funding for New York State and our Capital Region. Let’s be clear — these aren’t Democratic or Republican projects. These are cutting-edge programs working to drive innovation and bring energy costs down for everyone. By canceling hundreds of these projects across the nation, Donald Trump and his enablers are showing that they care more about their own power than about making life affordable or delivering good-paying jobs for the American people. It’s time for my Republican colleagues to stand up to this bullying behavior and advocate for the best interests of our communities.”
Representative Joe Morelle said, “At the direction of Donald Trump, Congressional Republicans chose to shut down the government rather than negotiate with Democrats—and New Yorkers are paying the price. These cancelled grants—including over $75 million destined for the Rochester region—will hurt businesses and families across our great state. As Vice Ranking Member of the House Appropriations Committee, I’m working with my colleagues to stand up to Donald Trump and secure the federal investments New Yorkers deserve.”
Representative Dan Goldman said, “Donald Trump’s reckless and shortsighted clean energy cuts are nothing short of partisan warfare against New Yorkers. After kicking over a million New Yorkers off their health care, Trump and his New York Republican allies like Elise Stefanik and Mike Lawler are now yanking away half a billion dollars in clean energy funding as punishment for a shutdown they caused. They’re putting politics over paychecks and jeopardizing thousands of good-paying union jobs in communities across our state. Once again, New York Republicans in Congress would rather serve Trump’s political agenda than stand up for their own constituents.”
Representative Tim Kennedy said, “Canceling these shovel-ready projects will kill jobs, stifle innovation, and raise costs for working families. These projects would have lowered energy costs and strengthened our grid during severe weather. Instead, Trump and Congressional Republicans have again sided with special interests over their own constituents, making it harder for families to pay their bills and for America to lead in the industries of the future. Western New Yorkers should be building the technologies that power the next generation, not watching those opportunities disappear because of Republicans in Washington.”
Representative John W. Mannion said, “This administration thinks research and innovation only matter in the states they won in an election. They’re wrong. These reckless cuts are job killers that hurt families across New York. They also sell out our future, hand an advantage to China, and will drive up energy costs for everyone. This funding should be restored immediately – and I’m advocating to restore it in congressional districts represented by either party, because that’s what’s good and right for all New Yorkers and all Americans.”
Representative Josh Riley said, “Families and small businesses in the Hudson Valley and Southern Tier are already getting squeezed by sky-high utility bills — and now this administration wants to make it even harder to keep the lights on. These cuts will only make life more expensive for working people. I’ve fought utility monopolies and their outrageous rate hikes, and I’ll keep fighting to restore funding and lower costs for Upstate New Yorkers.”
Assemblymember Al Stirpe said, “The ongoing attack from the current federal administration on anything that promotes clean energy continues unabated. Any disruption in already approved funding for these programs threatens the potential for new, high-paying jobs, stifles economic growth, and stagnates significant progress towards greener alternatives. As Chairman of the State Assembly Economic Development Committee, it is clear that such cuts do nothing but set New York State’s businesses and communities back – all while hurting real people and working families in the process. Companies that had been planning their next steps forward in the clean energy sector will now be faced with unnecessary hardship or be forced to reconsider critical investments. Without restoring this funding, New York risks falling behind in one of its fastest-growing industries and losing hard-won progress in the clean energy sector.”
Assemblymember Micah Lasher said, “Donald Trump is once again targeting New York’s economy by slashing funding for clean energy, putting thousands of good-paying jobs on the chopping block. Every Republican member of Congress from New York has a lot to answer for. I stand with Governor Hochul in demanding that these cuts be immediately reversed.”
Albany County Executive Daniel P. McCoy said, “Clean energy investment has been one of the most effective drivers of growth in our state, fostering innovation, strengthening our economy, and positioning us as a leader in sustainability. The withdrawal of these funds threatens to stall that momentum and undermine years of progress. I urge the Trump administration to reconsider this decision and fully restore the funding. Maintaining our commitment to clean energy is not only sound environmental policy, but it is also a vital economic necessity for the Capital Region and New York State as a whole.”
Erie County Executive Mark C. Poloncarz said, “Who is served by these cruel and vicarious cuts supported by New York’s cravenly sycophantic GOP caucus? Did New York Republicans realize that they were electing ‘representatives’ who would gladly vote to crush their local economies, strip away good-paying jobs, and let their communities wither all to pay for tax cuts for billionaires? It’s disturbing that elected officials would so openly and brazenly vote against the best interests of their constituents, but that’s today’s GOP. Their legacy will be one of shame and dishonor, accumulated in the service of a felon. New York deserves far, far better than this group of feckless bootlickers who sell us out for their own benefit.”
City of Schenectady Mayor Gary McCarthy said, “GE Vernova has played a vital role in revitalizing the GE campus through continued innovation in clean energy technologies. However, the proposed federal funding cuts threaten to significantly impede this progress, with far-reaching negative impacts not only on the company’s momentum but also on the broader economic and workforce development efforts across the city and county.”
Amherst Town Supervisor Brian Kulpa said, “Not only do these cuts immediately impact families and businesses, by cutting funding for clean energy development, Washington is taking direct aim at future generations. There’s a huge demand for energy, and the elimination of this clean energy funding will do irreparable harm. Today’s investments are the cornerstone that builds industry of tomorrow. These cuts are reckless and they significantly hurt local communities. I join Governor Hochul in urging our local representatives to immediately restore this vital funding – we need to invest in energy the same as we invest in infrastructure, it is our lifeblood.”
Henrietta Town Supervisor Steve Schultz said, “The need to reduce our environmental impact is reinforced almost every news cycle with violent storms, record high temperatures, shrinking glaciers, and rising sea waters. As with any developing technology, it can have difficulty competing with established solutions. This is where a responsible government steps in with incentive programs and policies to help level the playing field while those new technologies mature. The United States has a long history of such programs, which has helped the nation not only lead the world in new technologies but become an economic superpower while doing so. The investment in these new technologies pays dividends in the long term. Plug Power, Inc, in Henrietta, is an example of this, creating clean energy equipment for use in industrial and commercial settings. Dramatic cuts, especially those of a retaliatory or vindictive nature as we have seen lately out of Washington, will have a lasting negative impact that could take years or decades to recover from.”
Brighton Town Supervisor William Moehle said, “The Trump administration’s attacks on green energy investments are bad for the nation, but they are especially bad for Brighton. $4,969,022 in funding has been cut for one of Brighton’s high technology businesses, Ionomr Innovations, which conducts cutting edge clean technology research here in Brighton. Now more than ever, it is important to fund advances in clean energy technology, and I call on the administration to restore this important research funding for America’s future.”
Albany County Legislature Chairwoman Joanne Cunningham said, “We are resilient in Albany County. Even with nearly $111 million of our taxpayers’ funding not returning to us, we will continue to support our local business community with our state partners and Governor Hochul in particular. Recognizing the uncertainty of federal funding, we are proactively working to advance development in Albany County through our partnership with the State and the Governor on the multi-million-dollar expansion of the Albany Capital Center. We’re also thankful for the $400 million the State is investing in Downtown Albany at her request. With this continued support, we’re confident we can overcome this latest challenge.”
Rensselaer County Legislature Deputy Minority Leader Nina Nichols said, “Governor Hochul stands with the thousands of New Yorkers whose livelihoods are threatened by Washington’s reckless cuts. Slashing $500 million in clean energy grants doesn’t just stall progress—it risks over 1,000 good-paying jobs and delivers a $650 million blow to our economy. These communities deserve investment, not abandonment.”
Troy City Council President Sue Steele said, “Clean energy is critical to protecting our planet and creating a greener future for local communities like Troy. Just as we’re starting to see the economic and environmental benefits of federal investments in solar and wind energy, as well as sustainable building materials, the Trump administration wants to drag us back to the days of polluted air, dirty water, and harmful greenhouse gases from fossil fuels. I stand with Governor Hochul in condemning the Trump administration’s cuts to clean energy research in Troy and the Capital Region, and urge Congressional Republicans to take a stand against this latest attack on science, technology, and the hardworking Americans powering the renewable energy industry.”

Compliments of the New York State Governor’s Office

The post New York State Governor | Governor Hochul Slams Nearly Half a Billion Dollars in Federal Funding Cuts Targeting Dozens of New York Businesses and Clean Energy Programs first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

WASHINGTON, D.C. — This week, the United States Senate confirmed Mr. Ben Black as the new Chief Executive Officer (CEO) of the U.S. International Development Finance Corporation (DFC).
We are pleased to welcome Mr. Black as the next CEO of DFC. His confirmation comes at a pivotal moment as we continue to advance our dual mandate of fostering strategic and economic development investments and serve as a force multiplier for the Trump Administration’s foreign policy, economic prosperity, and national security agenda.
Mr. Black brings nearly 20 years of investment, managerial, and legal experience and a proven record of leadership to the role. His expertise will accelerate private capital deployment, increase opportunities for American companies and workers, and elevate DFC as a best-in-class financial institution and investment partner of choice.
On behalf of the entire DFC team, I am honored to welcome Ben to DFC and look forward to supporting his leadership as we continue to advance DFC’s important work helping make America and our partners around the world safer, stronger, and more prosperous.
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The U.S. International Development Finance Corporation (DFC), established in 2019 with bipartisan support under President Trump, is America’s development finance institution. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world. DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology — fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.
 
Compliments of the United States International Development Finance CorporationThe post DFC | Statement from Acting CEO Mr. Dev Jagadesan on Confirmation of DFC CEO Mr. Ben Black first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Artificial Intelligence (AI) is transforming how businesses operate, reshaping public services, and revolutionising science. AI has the potential to improve our lives in many ways. As the global race to harness its potential heats up, the European Commission has put forward two strategies that will help Europe stay ahead in AI industry and science respectively. 
The Apply AI Strategy sets out how to speed up the use of AI in key industries and the public sector. It will be used to help the EU unlock its societal benefits – from more accurate healthcare diagnoses to enhancing the efficiency and accessibility of public services. The strategy also addresses some of the key challenges by
• accelerating time-to-market – the time from concept to availability on the market – through linking infrastructure, data, and testing facilities
• strengthening the EU workforce to be AI-ready across sectors
• bringing together Europe’s leading AI actors through a new Frontier AI initiative
To coordinate this work, the Commission is launching the Apply AI Alliance, a forum bringing together industry, the public sector, academia, social partners and civil society. Meanwhile, an AI Observatory will monitor AI trends and assess sectorial impacts.
In parallel, the Commission has launched the AI Act Service Desk to help ensure smooth implementation of the AI Act, the world’s first comprehensive AI law.
Alongside Apply AI, the AI in Science Strategy focuses on putting the EU at the forefront of AI-driven research and scientific innovation. At its centre is RAISE – the Resource for AI Science in Europe – a virtual European institute that pools and coordinates AI resources for developing AI and applying it in science.
Strategic actions include
• measures to attract global scientific talent and highly skilled professionals to ‘Choose Europe‘
• €600 million from Horizon Europe to enhance access to computational power for science, which will secure access to AI gigafactories for EU researchers and startups
• plans for doubling Horizon Europe’s annual investments in AI to over €3 billion, including doubling funding for AI in science
• support for scientists to identify strategic data gaps and gather, curate, and integrate the datasets needed for AI in science
Back in April 2025, the Commission launched the AI Continent Action Plan, a plan that set the path for Europe to become a global leader in AI. The Apply AI and the AI in Science strategies are the next step in delivering this ambition and in positioning the EU to accelerate the use of AI in key sectors and science.
 
Compliments of the European CommissionThe post European Commission | Keeping European industry and science at the forefront of AI first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today released the September 2025 Survey of Consumer Expectations, which shows that households’ inflation expectations increased at the short- and longer-term horizons and were unchanged at the medium-term horizon. Despite a small rebound in the expected job finding rate, labor market expectations continued to deteriorate with consumers reporting lower expected earnings growth, greater likelihoods of losing jobs, and a higher likelihood of a rise in overall unemployment. The survey was fielded from September 1 through September 30, 2025.
The main findings from the September 2025 Survey are:
Inflation
• Median inflation expectations in September increased at the one-year-ahead horizon to 3.4% from 3.2% and at the five-year-ahead horizon to 3.0% from 2.9%. They remained steady at the three-year-ahead horizon at 3.0%. The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at the one-year and five-year horizons and was unchanged at the three-year horizon. The increase in the year-ahead measure was largest for those with at most a high school education and those with household incomes under $50,000.
• Median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one-year horizon, was unchanged at the three-year horizon, and rose at the five-year horizon.
• Median home price growth expectations remained unchanged at 3.0% for the fourth consecutive month.
• Median year-ahead commodity price change expectations increased by 0.3 percentage point for food (to 5.8%) and for gas (to 4.2%), 0.5 percentage point for the cost of medical care (to 9.3%), and by 1.0 percentage point for rent (to 7.0%). The year-ahead expected change in the cost of a college education declined by 0.8 percentage point to 7.0%. The reading for expected food price growth is the highest since March 2023.
Labor Market
• Median one-year-ahead earnings growth expectations decreased by 0.1 percentage point to 2.4% in September, the lowest reading since April 2021.
• Mean unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—increased 2.0 percentage points to 41.1%.
• The mean perceived probability of losing one’s job in the next 12 months increased by 0.4 percentage point to 14.9%, above the trailing 12-month average of 14.1%. The mean probability of leaving one’s job voluntarily, or the expected quit rate, in the next 12 months increased by 1.8 percentage points to 20.7%.
• The mean perceived probability of finding a job in the next three months if one’s current job was lost rebounded somewhat from a series low of 44.9% in August to 47.4% in September, while remaining well below the trailing 12-month average of 51.0%.
Household Finance
• The median expected growth in household income was unchanged at 2.9% in September, equaling the trailing 12-month average.
• Median nominal household spending growth expectations declined by 0.3 percentage point to 4.7%, falling below the trailing 12-month average of 4.9%.
• Perceptions of credit access compared to a year ago were largely unchanged while expectations for future credit availability improved, with the net share of respondents expecting it will be easier versus harder to obtain credit a year from now increasing slightly.
• The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.5 percentage point to 12.6%, remaining well below the trailing 12-month average of 13.5%.
• The median expectation regarding a year-ahead change in taxes at current income level increased by 0.2 percentage point to 3.6%.
• Median year-ahead expected growth in government debt increased by 0.9 percentage point to 7.5%.
• The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 24.9%.
• Perceptions about households’ current financial situations compared to a year ago improved somewhat with a larger share of respondents reporting that their households were better off compared to a year ago. Expectations about year-ahead financial situations deteriorated slightly with a smaller share of respondents reporting that their households are expecting to be better off a year from now.
• The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 0.9 percentage point to 39.8%, well above the trailing 12-month average of 38.0%.
About the Survey of Consumer Expectations (SCE)
The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing, and education to behave. It also provides insight into Americans’ views about job prospects and earnings growth and their expectations about future spending and access to credit. The SCE also provides measures of uncertainty regarding consumers’ outlooks. Expectations are also available by age, geography, income, education, and numeracy.
The SCE is a nationally representative, internet-based survey of a rotating panel of approximately 1,200 household heads. Respondents participate in the panel for up to 12 months, with a roughly equal number rotating in and out of the panel each month. Unlike comparable surveys based on repeated cross-sections with a different set of respondents in each wave, this panel allows us to observe the changes in expectations and behavior of the same individuals over time. For further information on the SCE, please refer to an overview of the survey methodology here, the FAQs, the interactive chart guide, and the survey questionnaire.
 
Compliments of the Federal Reserve Bank of New YorkThe post NY Fed | Short-Term Inflation Expectations Continue to Tick Up; Labor Market Expectations Deteriorate first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

By Marijn Bolhuis, Arindam Roy, Patrick Schneider, Zhao Zhang
Stronger fiscal and monetary policy frameworks and more developed local currency debt markets have supported emerging market resilience
Emerging market economies have held up remarkably well in recent years, even after periods of global financial turbulence. While favorable external conditions (in other words, good luck) often helped, it’s clear that good policies matter.
In the past, “risk-off” episodes—when global investors indiscriminately sold riskier assets—often hit emerging markets especially hard. They triggered sharp capital outflows and tighter financial conditions, causing currencies to plunge and inflation to surge.
That picture has significantly changed recently. Many emerging markets have weathered shifts in global risk appetite better than before. Capital outflows have been smaller, borrowing costs more contained, growth steadier, and inflation lower.
Improved policy frameworks—such as credible monetary policy, more independent central banks and more transparent fiscal policy—played an important role, as we show in a chapter of the new World Economic Outlook. Comparing typical risk-off episodes before and after the global financial crisis, our analysis concludes that improved policy frameworks contributed to smaller output losses and lower inflation.
Better frameworks also improved confidence and trust among investors. Local currency bond markets have deepened in many emerging markets, contributing to greater financial resilience. This helped reduce both currency mismatches and the risk of sudden capital outflows.
Yet risks remain: external conditions can quickly deteriorate, recent global shocks have eroded fiscal space, the post-pandemic inflation surge has pushed up inflation expectations, and political pressures could undermine hard-won credibility.
The presence of fiscal rules has also not prevented the buildup of debt in many emerging market economies—in large part due to limited compliance with the rules. The result: debt structures and vulnerabilities to global shocks differ widely across countries, as we discuss in the new Global Financial Stability Report.

Improved frameworks
Our analysis shows that monetary policy implementation has improved, and the credibility of central banks has strengthened. In the past, many emerging economies were reluctant to let their exchange rates move freely. But with better-anchored inflation expectations and stricter macroprudential regulation, countries have increasingly allowed the exchange rate to act as a shock absorber, and central banks could shift their focus toward stabilizing economic activity.
Meanwhile, central banks have bolstered their independence—both from fiscal dominance (when monetary policy had to accommodate fiscal needs) and from US monetary policy that determined domestic borrowing conditions. That means countries can now rely less on costly foreign exchange interventions.
Emerging markets have also made significant improvements to fiscal frameworks, which enabled governments to respond more effectively to shortfalls in demand. This has helped stabilize economies during global downturns and respond more forcefully whenever higher debt and interest rates pose a risk.
Comparing risk-off episodes before and after the global financial crisis shows that economic output was 1 percentage point higher than it would have been otherwise, with improved frameworks explaining slightly more than 0.5 percentage point, and favorable external conditions accounting for the rest. Inflation was 0.6 percentage points lower, thanks to the more effective policies.

Financial resilience and risks
But, here too, strengthened policies have helped.
Large emerging markets with strong policy frameworks and growing domestic savings have been able to rely more on local currency debt issuance and strong demand from domestic investors, especially nonbank financial institutions. As a result, the share of debt issued in local currency and owned by foreign investors has fallen to multiyear lows in many countries.

Greater domestic ownership of local currency debt reduces the sensitivity of emerging market debt to global shocks, according to new analysis in the Global Financial Stability Report. With more domestic ownership, bond yields rise less than they would otherwise in a risk-off scenario.
The stabilizing effect of domestic investors on bond yields appears to be especially true for banks. Our analysis shows that a risk-off shock is associated with a 19-basis-point increase in local currency yield spreads, but a one-standard-deviation increase in domestic bank ownership share mitigates that effect to 11 basis points. Greater ownership by domestic nonbank financial institutions can also be beneficial under certain circumstances.
However, improved financial stability and resilience have not been evenly shared. Smaller emerging markets and frontier economies have needed to rely on more expensive and less stable forms of financing, such as short-term domestic debt and international US dollar bonds. Efforts to further deepen local currency bond markets across a broader spectrum of countries would help build resilience.
Higher domestic ownership is also not without risks. In countries with low savings, narrow investor bases, and poor financial market infrastructure, excessive sovereign debt holdings can lead to problems. For example, large holdings of sovereign debt by banks can reduce their capacity to lend to the private sector, which may in turn reduce economic growth. In addition, sovereign defaults can lead to large losses in the banking sector, ending in expensive and difficult bank bailouts.
Continued commitment
Even though recent experiences have been encouraging, emerging markets will continue to be tested because uncertainty remains elevated. Progress across countries has been uneven and fiscal space is stretched in some cases.
Countries should prioritize efforts to improve the implementation and credibility of their policy frameworks, preserve central bank independence, and rebuild spending capacity for when it is needed (for example during an economic downturn). IMF capacity development can also help support local currency bond market development.
With continued reforms and stronger foundations, emerging markets can turn hard-won resilience into long-lasting stability.
 
Compliments of the International Monetary FundThe post IMF | Good Policies (and Good Luck) Helped Emerging Economies Better Resist Shocks first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.