Market Risk

The Federal Reserve's semiannual monetary policy report — released just days ahead of Fed Chair Kevin Warsh's inaugural testimony to Congress in his new role — highlights rising inflation and capital investment-driven economic growth.

Federal Reserve Bank of Dallas President Lorie Logan said at an event Thursday that conducting monetary policy actions through a third party would improve efficiency and make markets stronger.

Federal Reserve Chair Kevin Warsh's five policy review groups will be composed of a broad mix of business leaders, academics and former central bankers, including venture capitalist Marc Andreesen and former Fed Gov. Jeremy Stein.

Market watchers say it is plausible that regulators will have established rules of the road for tokenized bank deposits by next year. But to get there, many outstanding issues will need to be ironed out first.

Federal Reserve Board Gov. Christopher Waller says he is OK with dialing down the amount of communication issued by the central bank's monetary policy committee, but doesn't want the central bank to throw out the baby with the bathwater.

The Bureau of Labor Statistics report showed the labor force continued to expand but at a weaker rate than in recent months. The development weakens the case for a near-term rate hike.

Securities and Exchange Commission Chair Paul Atkins said tokenized bank deposits are likely to be a reality in 2027, and added that he is working with banking agencies on digital assets and capital requirements.

Lisa Cook can keep her seat on the Federal Reserve Board thanks to the Supreme Court's procedural concerns. Deeper questions about the central bank might not come for years — if at all.

Christopher Phelan, President Donald Trump's nominee to chair the Council of Economic Advisers, declined to directly answer questions about recent inflation data and the effects of tariffs on consumers during a Senate confirmation hearing Thursday.

The Federal Reserve's new chair wants to change the way the central bank communicates with markets and the public. What those changes ultimately amount to could represent a major shift in an agency that has made transparency a guiding light for decades.

The newly minted Fed chairman announced working groups for his five top policy priorities and strictly refrained from forward guidance in his debut press conference Wednesday afternoon.

The Federal Reserve weighs rising inflation and a growing economy against a truce in the Middle East and the rise of artificial intelligence in the first monetary policy meeting under new Chair Kevin Warsh.

Newly minted Federal Reserve Chair Kevin Warsh will host his inaugural press conference on Wednesday. Bankers will be paying close attention to what he says — and how he says it.

A value resurgence will overtake growth-stock dominance — the catalysts are already in motion, says Bernard Horn of Polaris Capital Management.

Balance sheet reduction is a top priority of new Fed Chair Kevin Warsh. Achieving that goal means avoiding the kinds of disruptions that roiled the Treasury bond market in 2019, the last time the central bank embarked on quantitative tightening.

Inflation continued to rise in May, bolstering the case for the Federal Reserve to keep its policy rate unchanged at next week's Federal Open Market Committee meeting. But the range of future monetary policy outcomes is wide, with all eyes on how newly installed Fed Chair Kevin Warsh navigates his new role.

The burgeoning predictions market is gaining users and volume rapidly and is being largely embraced by the Trump administration. But banks are torn between the promise of new revenue streams and the iffy legal foundations of the new market.

The Bureau of Labor Statistics Friday reported that the economy added 172,000 jobs in May and revised March and April's employment upward, making the Federal Reserve less likely to cut interest rates to support the labor market in the near term.

Mortgage industry participants say Federal Housing Finance Agency Director Bill Pulte's new role as acting director of national intelligence could imperil progress on a potential initial public offering of Fannie Mae and Freddie Mac.

Treasury Secretary Scott Bessent downplayed senators' concerns about higher costs for Americans, noting average yearly inflation is lower than during the pandemic, while also confirming acting Attorney General Todd Blanche's Tuesday claim that the administration will not move forward with a $1.8 billion "anti-weaponization fund."