Kevin Warsh has been confirmed by the Senate as chair of the US Federal Reserve with a 54-45 vote, mostly along party lines. Warsh, who previously served at the Fed from 2006 to 2011, takes over from Jerome Powell. US President Donald Trump expects Warsh to lower interest rates, although recent inflation data complicates that expectation.

European Central Bank President Christine Lagarde has called on European Union leaders to take decisive action and reform the bloc's institutional framework. Speaking in Aachen in 2026, Lagarde warned that Europe's existing structures are outdated and ill-equipped to handle current global challenges, emphasizing that the world is now less tolerant of institutional weaknesses. She urged policymakers to move beyond complacency and seize the opportunity to strengthen Europe's foundations, highlighting the need for a more integrated and resilient union.

The global nature of the energy price surge linked to Middle East conflicts could result in higher inflation and slower growth in the eurozone compared to a more localized impact, European Central Bank Chief Economist Philip Lane says. Additionally, European Central Bank Governing Council member Martins Kazaks says the ECB might have to raise interest rates if higher oil prices lead to increased inflation expectations.

US over-the-counter (OTC) derivatives trading experienced robust growth in the first quarter, largely propelled by strong activity in both interest rate and credit derivatives segments, according to the International Swaps and Derivatives Association. The total trading volume for interest rate derivatives surged by 36.8% year-on-year, reaching 1.09 million lots and a notional value of $174 trillion -- a 38.1% increase from the same period last year. This expansion underscores the substantial momentum in OTC markets, with increased reliance on central clearing and electronic trading venues further supporting market efficiency and transparency.

The UK economy grew 0.3% in March, surpassing expectations of a 0.2% contraction, indicating that the Middle East conflict has not significantly affected economic activity yet. The UK Office for National Statistics reports a 0.6% GDP increase in the first quarter, driven by the service sector, particularly computer programming and advertising. However, economists warn that the effects of the war in Iran may show in the second quarter, potentially slowing growth due to higher costs and softer demand.

Bank of Japan board member Kazuyuki Masu said interest rates should be raised "at the earliest stage possible" if economic data remain stable, citing persistent inflation risks tied to the Iran conflict and yen weakness. The comments boosted expectations for a possible June rate increase, with markets now assigning a high probability to another policy tightening step by the BOJ. In addition, yields on Japanese government bonds maturing in 20, 30 and 40 years rose Thursday despite strong demand at a 30-year bond auction, with the yield on the 30-year bond hitting a record 3.915%.

US government bond yields have reached their highest levels in nearly a year following reports indicating rising inflation. The 10-year Treasury yield rose to 4.5%, and the 30-year yield exceeded 5% after the producer price index showed its fastest increase since 2022, driven by higher energy costs.

China's yuan rose to a three-year high while equities slipped as markets reacted cautiously to the opening of summit talks between Donald Trump and Xi Jinping, with investors weighing trade stability and geopolitical risks. The visit also includes a business delegation led by major US executives, highlighting continued commercial ties even amid strained relations. The agenda is expected to focus on maintaining a fragile trade truce, alongside broader geopolitical issues including the Iran conflict.

The Bank of England is considering easing its proposed restrictions on stablecoins after feedback from the digital asset industry, with Deputy Governor Sarah Breeden noting that the initial proposals might have been overly conservative. The BoE is reassessing temporary ownership limits and the requirement for stablecoin asset backing, aiming to create a regime where stablecoins can succeed while ensuring safety.

This comprehensive 2-day Masterclass was developed to help participants understand the terminology of collateral, securities, and related documentation, learn about relevant regulatory history and current market practice, especially with regard to the post-Uncleared Margin Requirements landscape. This course also includes practical explanations of tasks and responsibilities for OTC margin managers. Register here to secure your spot!

With less than six months to go until market participants are required to clear cash Treasury transactions under a rule introduced by the Securities and Exchange Commission, and 12 months until repo trades are required to be cleared, the ISDA Treasury Forum will explore the milestones that have been achieved and discuss what remains to be done. Featuring leading market participants and infrastructures, the event will cover everything market participants need to know as the deadline approaches. Click here to register today!