Federal Reserve Chair Jerome Powell has expressed concern about the rapid rise of US government debt, which has reached $39 trillion, or 125% of GDP. Powell warns that the debt's growth, outpacing that of the economy, is unsustainable. Yale School of Management professor Andrew Metrick says the trend could lead to "a crisis where the world says" US-dollar-denominated debt is "no longer considered safe," adding, "If that happens we don't really have the tools to deal with it."

JPMorgan Chase has expressed concerns about a Federal Reserve proposal to change the calculation of systemic surcharges for US banks. The proposal would lower the coefficient used in the short-term wholesale funding component of the global systemically important bank score and remove the link to risk-weighted assets. Although this would reduce the overall weight of the component, eliminating the risk-weighted-assets denominator would partially offset the benefit.

Wall Street could face significant challenges if the US-Israel war on Iran disrupts capital exports from the Middle East, particularly from sovereign wealth funds such as the Public Investment Fund and the Qatar Investment Authority, writes Patrick Jenkins. These funds have been major players in mergers and acquisitions, asset management and private capital investment.

Major commodity traders are deepening ties with the Trump administration as Washington expands its role in resource dealmaking, making political access increasingly critical for securing contracts. The shift is forcing firms to rethink global relationships, including scaling back links with Chinese entities, as geopolitical pressures reshape traditionally apolitical trading strategies.

The Senate has delayed consideration of the Clarity Act, which would set digital asset regulations, and the postponement is creating uncertainty for the Commodity Futures Trading Commission. The delay stems from unresolved issues regarding stablecoin yields and a potential amendment barring senior government officials from profiting from crypto. The CFTC, expecting broader responsibilities, faces challenges with a reduced workforce and budget. "If this doesn't get done soon, it might not get done at all this year," said lawyer Stephen Aschettino of Fox Rothschild.

The battle for talent among hedge funds is escalating with a strategy known as "gazumping," in which funds outbid one another at the last minute to secure top traders. Recruiters say this has led to pay packages exceeding $50 million, with clients ultimately bearing the cost through opaque pass-through fees.

The BBC has found a pattern of suspicious trading activity occurring shortly before major announcements by President Donald Trump, raising concerns about potential insider trading. The analysis highlights five significant instances where trading volume surged just before Trump's statements, leading to substantial financial gains for traders. The White House did not respond to the BBC's request for comment, and a Securities and Exchange Commission spokesperson declined to comment.

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.

FalconX carried out the first tokenized gold derivatives trade referencing the PAX Gold token, a significant step in developinga derivatives market for tokenized commodities. FalconX estimates that derivatives activity in tokenized commodities could become a $5 billion market.