Karen Shaw Petrou, a preeminent American fiscal policy analyst and co-founder of Federal Financial Analytics, passed away on February 21, 2026, in Washington, D.C., at the age of 72, after a brief battle with liver cancer. Petrou was widely recognized for her profound insights into financial regulation and monetary policy, earning her a reputation as an oracle within Washington’s economic and regulatory circles.

Born Karen Ann Dolmatch in New York City in 1953, she grew up in Briarcliff Manor, New York. At the age of 18, Petrou received a diagnosis of retinitis pigmentosa, a condition that doctors initially believed would lead to complete blindness by age 25. Defying these early predictions, she maintained her ability to read into her thirties and did not require a guide dog until her fifties, a testament to her resilience and the evolving understanding of inherited retinal diseases.

Petrou pursued a distinguished academic path, earning an undergraduate degree in Political Science from Wellesley College. She also undertook studies at the Massachusetts Institute of Technology before completing her Master’s Degree in Political Science from the University of California, Berkeley, where she was also a doctoral candidate.

Her professional journey began in 1977 at Bank of America, where she served as a corporate political scientist, analyzing foreign regimes for investment stability. In 1985, she co-founded Federal Financial Analytics with her husband, Basil Petrou. The firm quickly became a leading provider of analytical and advisory services on legislative, regulatory, and public-policy issues affecting financial services companies globally.

Karen Petrou was a prolific author and sought-after speaker, frequently testifying before the U.S. Congress and addressing institutions such as the European Central Bank, the International Monetary Fund, and various Federal Reserve Banks. Her influential book, "Engine of Inequality: The Fed and the Future of Wealth in America," published in 2021, critically examined the Federal Reserve's role in wealth disparity. She was also the innovator behind the BioBonds financial instrument, designed to unlock billions for biomedical research.

Beyond her professional achievements, Petrou was deeply committed to philanthropy, particularly in the fight against blindness. She served as the Board Chair of the Foundation Fighting Blindness, a role she cherished as the highest honor of her life. Her leadership at the Foundation, which began in July 2024, was marked by a strategic vision to broaden research focus, including a commitment to late-stage vision restoration.

Karen Petrou was married to Basil Petrou, a housing expert, whom she met through their professional work. They married in 1995, and Basil passed away in 2021. Her independence, sharp intellect, and unwavering commitment to improving lives, even when her policy prescriptions challenged conventional wisdom, left an indelible mark on the financial policy landscape. She is survived by her brother, Stephen Dolmatch.