Under Lula, Brazil is walking on the financial wild side

But the signals are mixed. Lula’s government is spending lavishly and he often seems reluctant to rein that in. He has been meddling in state-controlled companies. He has frequently sniped at Roberto Campos Neto, the president of the central bank, which has been formally independent since 2021. Mr Campos Neto’s term ends this year, along with that of two of the bank’s eight other board members. The government will be able to replace them, if the Senate approves. That means that six of the nine members of the board will have been appointed by Lula.