The Federal Reserve governor warned in a speech Saturday that lower capital requirements and lighter supervision could create a credit 'sugar high' that could spur excessive risk-taking, with potentially significant long-term consequences.

Members of the House Financial Services Committee pressed prudential bank and credit union regulators about the potential risks of bank lending to private credit firms in a hearing Thursday.

A retrospective paper on the former Federal Reserve chair's tenure offers takeaways that speak directly to his successor's policy agenda.

Beyond developments in the Middle East, a big focus will be Friday's release of monthly employment figures, which are projected to show the labor market remained resilient in May.

Through May 27, the Bloomberg Treasury Index gained 0.7% on the week, on course for its best weekly performance since Feb. 27, the day before the war started.

Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that she believes price growth is still heading toward the central bank's 2% target when factoring out one-time shocks such as tariffs and elevated oil prices.

US 10-year yields are poised to snap their longest streak of declines in six months, advancing one basis point to 4.49% due to waning optimism that a peace deal may soon be reached to the end the war between the US and Iran.

The 30-year bond's yield, which has closed above 5% every day since May 12, approached 4.98% at one point.

On Monday, Trump said talks with Tehran on an interim deal to extend the ceasefire and reopen the Strait of Hormuz were "proceeding nicely."

The shift gathered pace at the most recent policy meeting in April, when three voters on the Federal Open Market Committee voted against the decision to hold rates steady.

Warsh takes over at a tense moment for the economy and the central bank. Price pressures have reaccelerated in recent months, driven by the impact of war in the Middle East on energy supplies.

Higher energy and commodity prices are intensifying headline inflation, which means inflation is headed is not headed in the right direction.

With the war-driven price shock sending 30-year bond yields to a nearly two-decade high, Wall Street analysts say the technology is, for now, having the opposite effect on inflation.

The 30-year rate increased six basis points to 5.18% on Tuesday, a level last seen on the brink of the global financial crisis in 2007, rising alongside US government yields across maturities.

Yields dipped as much as three basis points Monday after Iran's semi-official Tasnim reported that Washington proposed a temporary waiver on Iran oil sanctions.

Three senior officials say attackers will eventually breach bank defenses, and supervisors should plan for it — while U.S. regulators stay nearly silent.

Treasury two-year yields rose four basis points to 3.93% as oil climbed after the US and Iran rejected proposals aimed at ending the conflict.

The Treasury anticipates keeping nominal note and bond sale sizes unchanged "for at least the next several quarters," the department said on Wednesday.

Interest-rate swaps showed traders have priced in about a 70% chance of a Fed rate hike by April 2027. That marked a sea-change from before the Iran conflict.

Warsh won the race for Fed chair partly through sketching out a road map to rate cuts on the premise that an AI-driven productivity boom would keep inflation low.