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Senate Advances to Final Vote on Kevin Warsh Nomination to Fed Board

  • The Senate advanced Kevin Warsh’s nomination as the next Federal Reserve chair, voting 49-44 to invoke cloture.
  • The vote on Warsh’s nomination to the board closely followed party lines, with two Democrats voting to advance it.
  • Democratic opposition stems from concerns about Federal Reserve independence amid President Trump’s pressure campaign.

 
Market Participants Eye March 2027 for Next Bank of Canada Rate Increase

  • Market participants expect the Bank of Canada’s first interest-rate increase in March 2027, an earlier timing than previously surveyed.
  • A central bank survey indicated market participants expect inflation to average 2.6% in 2026.
  • The Bank of Canada left its benchmark interest rate unchanged at 2.25% last month.
Japan Finance Minister Confirms Continued Coordination with U.S. on Forex

  • Japan’s Finance Minister Satsuki Katayama and Treasury Secretary Scott Bessent reaffirmed U.S.-Japan commitment to currency market monitoring.
  • Japan likely intervened in the foreign-exchange market during Golden Week, spending an estimated 10 trillion yen ($63.60 billion).
  • Treasury Secretary Scott Bessent led “rate checks” in January, a preliminary step before intervention, raising speculation of joint action.
U.K.’s Starmer Fights for Job as Leadership Crisis Spills Into Markets

  • British Prime Minister Keir Starmer is fighting for his job amid calls from cabinet members to set a departure timetable.
  • U.K. borrowing costs rose to their highest levels since 2008, with 10-year government bond yields above 5.1%.
  • Nearly 80 Labour Party lawmakers publicly called for Starmer to quit, and a minister resigned, increasing pressure.
China Central Bank Warns on Imported Inflation Risks

  • People’s Bank of China warned of imported inflation risks from higher global oil and commodity prices, pledging “moderately loose” monetary policy.
  • China’s factory-gate inflation ended a near four-year decline in March and soared to a 45-month high in April, according to official data.op
  • The central bank noted China’s 5.0% first-quarter economic growth was uneven, relying more on exports than domestic demand.
U.S. Small-Business Confidence Ticks Up

  • U.S. small business optimism index rose 0.1 points to 95.9 in April, but rising cost pressures hampered sentiment.
  • The net percentage of owners increasing average selling prices rose 5 points to 30% in April, above its 13% historical average.
  • The uncertainty index fell 4 points to 88, but remains above its historical average of 68.
German Investor Sentiment Climbs on Tentative Hopes of End to Iran War

  • German investor confidence unexpectedly brightened this month on hope for a prompt end to the Iran war.
  • The ZEW Indicator of Economic Sentiment rose to minus 10.2 in May from minus 17.2 in April.
  • Weak industrial production, rising energy prices, and inflation above 2% burden the German economy, ZEW President Achim Wambach said.
U.S. Employment Trends Index Ticked Up in April

  • The Conference Board’s Employment Trends Index rose to 105.77 in April, reflecting a relatively healthy U.S. labor market.
  • Initial jobless claims fell to near-historic lows at the end of April, and temporary help services employment rose.
  • The share of small firms unable to fill jobs rose to its highest level since June 2025, while involuntary part-time workers increased.
Housing Market’s Spring Is Shaping Up as a Bust After April Sales Were Flat

  • Existing home sales rose 0.2% in April to a seasonally adjusted annual rate of 4.02 million, falling below economists’ forecasts.
  • The April gain reversed a revised 2.9% drop in March, but economists had forecast a 3% increase for April.
  • Mortgage rates, which fell below 6% in February, rose to 6.37% last week because of the war in Iran.
Higher Gas Prices Are Seeping Into the Produce Aisle

  • Rising diesel prices, at $5.66 a gallon, are increasing food distribution costs.
  • Food distributors face dwindling profit margins and are passing on increased fuel costs to retailers and consumers for items like avocados and lemons.
  • Fruits and vegetables are particularly affected by fuel price surges because of long-distance, temperature-controlled transport, adding to existing price pressures.
The Insider-Trading Scandal That Is Rocking M&A Law Firms

  • A lawyer, Nicolo Nourafchan, was arrested and charged with securities fraud for an insider-trading scheme spanning a decade.
  • Nourafchan allegedly provided tips on over a dozen undisclosed mergers and acquisitions, recruiting lawyers from other elite firms.
  • The scheme involved 29 other defendants and generated millions in trading gains from deals involving major companies.
 

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