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AXIOS (Barak Ravid) - Israel and Lebanon expected to sign framework agreement

Israel and Lebanon plan to sign a framework agreement on Friday after four days of negotiations in Washington, mediated by the Trump administration, Israeli and Lebanese officials told Axios. Why it matters: The signing is a significant diplomatic breakthrough, but it's unclear how much of it can be implemented as long as Hezbollah is still armed and influential in the country. Breaking it down: The framework agreement describes a path for a future peace agreement and includes immediate steps on the ground the parties will take. - One such step is the launching of two "pilot projects" where the Israeli military is to withdraw from small areas it currently occupies and the Lebanese army is to deploy there. - One of those areas is north…

Israel and Lebanon plan to sign a framework agreement on Friday after four days of negotiations in Washington, mediated by the Trump administration, Israeli and Lebanese officials told Axios. Why it matters: The signing is a significant diplomatic breakthrough, but it's unclear how much of it can be implemented as long as Hezbollah is still armed and influential in the country. Breaking it down: The framework agreement describes a path for a future peace agreement and includes immediate steps on the ground the parties will take. - One such step is the launching of two "pilot projects" where the Israeli military is to withdraw from small areas it currently occupies and the Lebanese army is to deploy there. - One of those areas is north…Open

AXIOS (Neil Irwin) - Nobody's sure where the Federal Reserve is heading

Predicting what the Federal Reserve will do next has become an exercise in trying to game out the tactical instincts of a new chairman who isn't giving the world much to work with. Why it matters: While it's early days in the Kevin Warsh chairmanship, his reaction function — the way he is likely to respond to incoming information about the economy — is a black box. - It means that a wide range of possibilities for interest rate policy this year remain in play — from multiple rate hikes starting in late July, to leaving rates steady indefinitely. - Warsh's policy direction should become clearer once he speaks more publicly and as incoming data sheds light on how quickly the inflationary pressures unleashed by the Iran war will…

Predicting what the Federal Reserve will do next has become an exercise in trying to game out the tactical instincts of a new chairman who isn't giving the world much to work with. Why it matters: While it's early days in the Kevin Warsh chairmanship, his reaction function — the way he is likely to respond to incoming information about the economy — is a black box. - It means that a wide range of possibilities for interest rate policy this year remain in play — from multiple rate hikes starting in late July, to leaving rates steady indefinitely. - Warsh's policy direction should become clearer once he speaks more publicly and as incoming data sheds light on how quickly the inflationary pressures unleashed by the Iran war will…Open