During a month when warning signs flashed alarms in other markets traders flocked to US government debt.

Futures spreads linked to the Secured Overnight Financing Rate, which closely track expected Fed policy, are becoming deeply inverted — a sign that traders are starting to price a more prolonged central bank easing cycle.

Federal Reserve Gov. Lisa Cook said AI could boost productivity, but warned the transition may raise unemployment and force difficult tradeoffs between inflation and jobs.

The top court's verdict eliminates import taxes that have acted as a restraint on the government's $1.8 trillion budget deficit and the swelling national debt.

Minutes of the Federal Reserve's Jan. 27-28 policy meeting revealed several officials suggested the central bank may need to raise interest rates if price growth remains stubbornly high.

Federal Reserve Vice Chair for Supervision Michelle Bowman said in comments Wednesday that the central bank plans to publish its Basel III endgame capital proposal for public comment before the end of March.

Yields across maturities declined by at least three basis points Friday, led by shorter-maturity tenors that are most sensitive to Fed rate changes.

Traders are now pricing in the Fed's next rate reduction in July, after the term of current Chair Jerome Powell ends in May.

Some yields went to their lowest levels of the past month after data showed a loss of consumer spending momentum, reflecting anxiety about the cost of living and slowing job growth.

The extra yield investors demand to hold 10-year notes compared with their two-year counterparts hit 73.7 basis points this week, just shy of the 2022 high touched in April.

American Banker's 2026 Predictions report finds that nonbank entities and check fraud are major threats to local banks in the coming months.

In a contentious House Financial Services Committee oversight hearing, Treasury Secretary Scott Bessent sidestepped questions on the Trump family crypto conflicts of interest and inflation with pugnacious responses to Democratic lawmakers' questions.

Former Fed Gov. Kevin Warsh is a relatively known quantity to financial markets, but his embrace of President Trump's agenda and the White House's own contentious relationship with the central bank make it hard to know with certainty where — or even whether — he will lead the Fed.

Bloomberg's dollar gauge rallied Friday morning in New York after Trump announced the post on social media. Short-term Treasury yields fell while those on longer tenors rose.

The Federal Open Market Committee voted 10-2 Wednesday to hold the benchmark federal funds rate in a range of 3.5%-3.75%.

The unexpected drop in the Conference Board's gauge of consumer sentiment in January to the lowest level in more than a decade fortified the prospect of two Federal Reserve interest-rate cuts this year.

State regulators say proposed changes by the Federal Reserve that would make state bank examiners the primary boots on the ground will make bank examinations faster, but could cause some issues to go overlooked.

A surge in gauges of US interest-rate volatility was also brief, with investors anticipating the Federal Reserve will leave rates unchanged at their meeting next week, amid signs of resilience in the economy.

Observers said the Supreme Court likely will allow Federal Reserve Gov. Lisa Cook to remain at her post while she challenges her purported removal by President Donald Trump. But her continued presence would slow, rather than stop, the president's quest for a voting majority on the central bank board.

The Supreme Court Wednesday appeared skeptical of the Justice Department's argument that removal of a Federal Reserve governor is unreviewable or that the president's preference for Fed governors outweighs the harm to the Fed from curbing the central bank's political independence.