S enator Thom Tillis will block the nomination of Kevin Warsh to replace Federal Reserve Chairman Jerome Powell until the Justice Department drops its investigation into Powell.
Related Brief 1h ago
monetary policy Federal Reserve Chairman Jerome Powell's term term ends May 15
President Donald Trump has threatened to fire Jerome Powell if he does not step down when his term as chair ends May 15. The move comes after a series of confrontations between the administration and the Federal Reserve. U.S. attorneys from the Washington D.C. office have been leading a criminal probe into Powell, which focuses on Powell's testimony to Congress regarding cost overruns in a multibillion-dollar multibillion-dollar office renovation project. The investigation seeks to determine if public money was wasted and if Powell Powelly made false statements to Congress. U.S. Attorney Jeanine Pirro, citing an 80% cost overrun, stated the project deserves review. Chief Judge James Boasberg, however, ruled that the DOJ's probe was driven by President Donald Trump's political animus toward Powell, and effectively blocked the investigation. Following this ruling, DOJ prosecutors Carlton Davis and Steven Vandervelden, and a case agent, made an unannounced visit to the Fed's construction site to request a tour. Fed management denied them access to the site without preauthorized clearance. The prosecutors were turned away. President Donald Trump has again threatened to fire Powell if he does not step not step down when his term as chair ends May 15.
The investigation centers on congressional testimony regarding cost overruns of almost 80% over the original budget for the renovation of the Federal Reserve's headquarters. Federal prosecutors under U.S. Attorney Jeanine Pirro attempted to bypass court limits on this inquiry by making an unannounced visit to the Fed construction site to check on progress.
Related Brief 1d ago
monetary policy One rate cut is all that's left on the table as inflation shocks and political pressure collide at the Fed
One rate cut is all that remains within reach for the Federal Reserve this year, and even that is uncertain. Inflation pressures from a global supply shock — triggered by the six-week Iran conflict — have already pushed U.S. consumer prices to their fastest rise in nearly four years, driven by a record surge in gasoline and diesel. Crude oil prices have jumped more than 30%, feeding directly into household budgets and hardening inflation expectations. Short-term inflation expectations have ticked up, and the Fed, meeting in March, held its benchmark rate steady in the 3.50% to 3.75% range. Still, a majority of policymakers signaled at least one cut could be appropriate in 2024. Former Treasury Secretary Janet Yellen, speaking at the HSBC Global Investment Summit in Hong Kong, said that if she were attending the next FOMC meeting, she would write down one cut — later in the year — as her best guess. Yet markets have moved even further away from that view: traders have now priced out any chance of a 2024 cut, reversing earlier bets on two. The shift reflects not just inflation but growing concern over political interference. Former President Donald Trump has launched an aggressive campaign to pressure the Fed, criticizing Chair Jerome Powell and pushing to replace him with Kevin Warsh, whom Trump believes would deliver steep rate cuts. Trump has also targeted the Fed’s headquarters renovation, sending prosecutors from Jeanine Pirro’s office to inspect the project over cost concerns. Yellen, who chaired the Fed from 2014 to 2018, called the level of political pressure unprecedented, describing it as a threat to the central bank’s independence. With inflation limiting monetary flexibility and political forces testing institutional boundaries, the path to easier policy has narrowed to a single, fragile possibility.
Chief Judge James Boasberg blocked subpoenas issued by Pirro's office in March after finding the government had produced essentially zero evidence of criminal wrongdoing. Boasberg rejected a subsequent attempt to revive those subpoenas earlier this month.
Related Brief 9h ago
trading regulations Retail Day Trading Now Governed by Risk Exposure Rather Than Account Balance
Retail investors with less than $25,000 in their margin accounts can now execute more than four day trades in five business days. This change follows the SEC's approval of a mesma rule change proposed by FINRA, which eliminates the Pattern Day Trader designation and the $25,000 minimum equity requirement. The previous framework restricted margin account holders who made four or more same-day trades within five business days from continuing to day trading unless they maintain that balance. FINRA stated the $25,000 threshold was designed to prevent overtrading when commissions eroded returns, a logic that no longer applies in the era of zero-commission trading. The SEC action also eliminates all related day-trading buying power provisions under FINRA Rule 4210. Broker-dealers must now follow new intraday margin standards that require them to monitor and address real-time risk exposure in customer margin accounts. Customers may be required to add funds to their accounts or reduce positions if their risk exposure grows too large.
Outside counsel Robert Hur, representing the Fed, rebuked the effort to circumvent the court's findings that the interest in the renovation project was pretextual. The attempt to bypass court limits on the investigation ensures the nomination of Kevin Warsh remains stalled.
Related Brief 2h ago
securities regulation Retail traders can now day trade without a $25,000 minimum balance
Retail investors with accounts under $25,000 can now execute four or more day trades within a five-business-day period without facing an account freeze. This change follows the SEC's approval of a FINRA rule change to eliminate the pattern day trader (PDT) designation and its accompanying $25,000 minimum equity requirement. The original 2001 rule was designed before the rise of zero-days-to-expiration options and modern intraday activity. Under the new dynamic intraday margin framework, margin requirements are based on intraday exposure rather than fixed account thresholds. Broker-dealers must implement systems to block trades in real-time if they exceed margin limits or run end-of-day risk calculations. Accounts that repeatedly fail to cover intraday margin deficits within five business days will face a 90-day restriction on increasing short positions or debit balances.
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