“Kevin Warsh Doesn’t Want the Fed to Hold Your Hand Anymore”
Fed Chair Kevin Warsh used his first press conference to showcase his different approach to communicating with the public. The FOMC’s policy statement was shorter and offered fewer clues about future moves. Warsh declined to share his personal forecast on rates while other FOMC members continued the tradition of projecting where they think rates are headed. Markets responded by raising expectations for an interest rate hike.
“Senate, House Reach Deal on Housing Bill, Senate to Start Votes Tuesday”
House and Senate leaders reached an agreement on a bipartisan housing bill that includes provisions aimed at increasing housing supply and expanding homeownership. The package also contains several community banking measures, including landmark reciprocal deposits legislation. The legislation could move quickly through Congress in the coming weeks.
“Why Mastercard’s Stablecoin Moves Signal a Shift for Banks”
Mastercard will allow regulated stablecoins to be used for settlement across its network, bringing digital money further into the financial mainstream. For banks, the key question is becoming less about whether stablecoins or tokenized deposits prevail and more about how to maintain deposits, customer relationships, and a role in the payments system as new forms of money emerge.
To hear Fintech Takes founder Alex Johnson’s latest views on stablecoins vs. tokenized deposits, check out our most recent episode of Banking with Interest.
“GAO Prods FDIC on Rotating Examiners”
Congress’ watchdog is urging the FDIC to rotate examiners and strengthen its oversight of blockchain-related risks. The recommendations reflect continued scrutiny of bank supervision following the 2023 bank failures.
“2026 Compensation & Talent Survey: Seeking AI Expertise”
Bank leaders increasingly view AI expertise as a critical need in the C-suite, according to Bank Director’s latest compensation and talent report. The report also found that many boards remain unprepared for CEO succession despite expected retirements among key executives.
“‘We Are Not Ready’: AI Could Trigger Bank Runs in Seconds, Lawmaker Says”
Rep. Bill Foster, D-IL, warned regulators that agentic AI could accelerate deposit outflows by automatically moving deposits at the first sign of trouble, claiming AI could compress a liquidity event that once unfolded over days into a matter of seconds.
“The Banks Building Customer Habits Will Outgrow Those Buying Accounts”
Banks continue to rely heavily on rate and fee promotions, while fintechs are increasingly using incentives designed to build customer habits, reflecting different approaches to winning and retaining customers over the long term.
In Other News
Hackers are increasingly using home internet devices to carry out cyberattacks, a job AI was supposed to eliminate is relying on humans more than ever, and see which chain has dethroned Chick-fil-A as America’s top fast-food restaurant.