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It was the most serious incursion into NATO territory since the alliance began in 1949. At least 19 Russian drones
violated Poland’s airspace
last night and early this morning. The Polish prime minister said his country was at its “closest to open conflict since the second world war”. How will NATO respond to Vladimir Putin’s dangerous drone probe?
Elsewhere, the Federal Reserve is
preparing to cut interest rates,
but the situation is tricky. The Fed’s two goals—full employment and stable prices—are in conflict. Rate cuts would support the struggling labour market, but they might also juice inflation, which remains above target. The risk is that cheaper money will allow inflation to get out of hand once more, destabilising markets. American bondholders are jumpy. | 
