Policy & Regulation

A report from the Federal Deposit Insurance Corp. found that business clients with large volumes of uninsured deposits fled Silicon Valley Bank, Signature Bank and First Republic at unprecedented speed, contributing to those banks' collapses.

The Senate voted 54-45 to confirm Kevin Warsh to lead the central bank. Warsh will take the reins from Jerome Powell, who said he will remain on the Federal Reserve Board.

An annual Federal Reserve survey of nearly 13,000 respondents found that households generally felt financially secure in 2025, though many cited rising prices as a lingering concern.

Kevin Warsh's nomination to the Federal Reserve chairmanship will require a second vote, which should happen this week.

The community bank trade group says crypto firms are combining stablecoin rules, Fed master account access and trust charters to replicate banking without bank rules.

Calls to replace proposed deposit insurance reforms with a revived Transaction Account Guarantee program would make the federal government's role in a bank run purely reactive. That would be a mistake.

Market watchers say that the economy as a whole is holding up under higher energy prices and do not expect a recession. Even so, observers are watching financial markets and consumer spending for signs that inflation expectations are taking hold.

Three senior officials say attackers will eventually breach bank defenses, and supervisors should plan for it — while U.S. regulators stay nearly silent.

The cost of deposits has fallen but the trend may get short-circuited by a Fed that can't cut rates amid the inflationary pressures of the war in Iran.

Kevin Warsh is a younger version of Jay Powell but with a convincing economist "eminence front." What Warsh does not have, as was the case with Powell, is an economics Ph.D., and that, as the post-pandemic inflation surge has shown us, is critical.