Federal Reserve chair nominee Kevin Warsh is set to appear before the Senate Banking Committee for his confirmation hearing today, where lawmakers are expected to focus on Fed independence, the interest-rate outlook and plans to reduce the central bank's $6.7 trillion balance sheet. Warsh's nomination will require approval by the committee and a majority vote in the full Senate to be confirmed.

JPMorgan Chase is expanding its Security and Resilience Initiative to Europe and the UK, aiming to invest $1.5 trillion over 10 years in critical industries such as defense, energy and infrastructure. The move, led by Chuka Umunna in the UK and Daniel Rudnicki Schlumberger in Europe, comes amid increasing geopolitical tensions and the need for stronger security measures in Europe.

Hedge funds and asset managers are increasingly positioning for a weaker US dollar, boosting demand for options tied to the euro and other currencies. The shift reflects fading safe-haven demand as Iran tensions ease, with the dollar already down nearly 2% this month.

Wall Street banks are expanding sales of quantitative investment strategies to pension funds, endowments and wealthy clients, driving rapid growth in the business. Assets in these rule-based trading programs have surged in recent years as investors seek alternatives to traditional strategies amid market volatility and AI-driven shifts.

SEC chair Paul Atkins discusses his priorities one year into his role at the regulator. "I promised a new day at the SEC when I came aboard and we have, we've pivoted from the old practice of regulation through enforcement and the opaqueness of the agency," he said. Atkins also discussed the IPO market, prediction markets and private credit risks.

Wells Fargo CEO Charles Scharf said Federal Reserve independence is a critical pillar of the financial system, while noting presidents can express views on policy. Speaking as Kevin Warsh prepares for his confirmation hearing, Scharf said cutting interest rates before there is clarity on the Iran conflict would be a mistake, citing inflation risks and uncertainty.

The SEC and CFTC proposed revisions to Form PF that would narrow hedge fund reporting by raising the filing threshold from $150 million to $1 billion and eliminating certain data fields viewed as duplicative. Regulators said the changes are intended to better align reporting with systemic risk monitoring, while industry groups welcomed a more proportionate approach to private fund disclosures.