“The Decades-Old Legal Question at the Heart of the Fed Chair Showdown”
A fight is brewing over who will lead the Fed if Chair Jerome Powell’s term ends before a successor is confirmed. The administration says it could appoint a replacement, and President Trump has said he would fire Powell if he does not resign. Powell, however, plans to stay on as “chair pro tempore,” setting up a clash that could end up in court and test the Fed’s independence.
“Banks Still Have Time to Shape the Shift to Stablecoin Payments. But Don’t Delay”
Stablecoins are moving into the regulated banking system, with at least 15 firms seeking OCC charters tied to digital asset services. As a result, tokenized money is becoming a more practical tool for payments and treasury functions, especially across borders. This puts pressure on deposits and fee income, but also gives banks a chance to build these capabilities into existing services.
“Treasury Secretary Scott Bessent Is Preparing Banks to Collect Citizenship Data”
The Trump administration is moving toward requiring banks to collect citizenship status at account opening, and Treasury Secretary Scott Bessent has made clear the industry will be expected to comply. The change would expand current identity checks and could add significant cost and operational burden. Banks and policy groups also warn it may push more people out of the banking system.
Hopes for rate cuts this year are fading as geopolitical tensions and higher energy prices keep inflation elevated. Markets now expect rates to stay where they are through year end, weighing on consumers and small businesses and showing up in weaker spending and hiring.
“Bank Of America Tech Chief Shares AI Strategy Focus”
Bank of America is moving beyond small AI pilots to apply the technology across full workflows. Most employees already use internal AI tools, and focus is now on scaling them, setting guardrails, proving the return, and upskilling the workforce. The aim is to make AI part of everyday operations, not a series of one-off efforts.
“JPMorgan Blasts Capital Proposals, Estimates 4% Increase”
JPMorgan execs claim new regulatory proposals would require the bank to hold about 4% more capital, not less as regulators have suggested. CEO Jamie Dimon and others argue the rules still overlap and are miscalibrated, particularly in how they apply to the largest banks.
“Yes, You Can ‘Vibe Code’ for Your Bank. How to Get Started”
New AI tools let nontechnical bank employees build calculators, dashboards, and other internal applications, by describing what they want in plain language. This can speed up small projects, but it still requires careful handling of data and clear internal controls.
In Other News
A meteor traveling at hypersonic speeds streaked across the Philadelphia sky before burning up, country music star Kacey Musgraves reported seeing unexplained objects on a recent flight, and a federal jury found Live Nation illegally monopolized concert ticketing.
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