Kevin Warsh has been confirmed by the Senate as chair of the Federal Reserve in a 54-45 vote, largely along party lines. Warsh, who previously served at the Fed from 2006 to 2011, succeeds Jerome Powell. He assumes leadership as inflation remains above the Fed's 2% target and markets scale back expectations for rate cuts, amid pressure from the White House and a divided policy committee.

- Kenneth E. Bentsen, Jr., president and CEO of SIFMA

Investors have secured a 5% yield on 30-year Treasuries for the first time since 2007, driven by rising energy prices and inflation concerns. The $25 billion auction saw middling demand as yields hit their highest levels in almost a year. Deutsche Bank's Steven Zeng notes that 5% yields typically attract pension funds, but sustained inflation could push yields higher.

Tech stocks led the S&P 500 and Nasdaq to fresh record highs Wednesday, driven by continued enthusiasm around artificial intelligence. Nvidia extended its rally, briefly becoming the first company to reach a $5.5 trillion market value, while Cisco jumped after issuing an upbeat sales forecast tied to AI spending. The Dow Jones Industrial Average edged lower as inflation concerns continued to cloud the outlook for rate cuts.

Privacy-focused cryptocurrency Zcash is drawing renewed investor interest as some early bitcoin supporters look for smaller digital assets with growth potential. Zcash, which allows users to shield transaction details such as sender, recipient and amount, has surged roughly 50% over the past month and more than 1,100% over the past year. Supporters view the token as offering features that distinguish it from bitcoin as the broader crypto market matures, while critics point to privacy-focused functionality and the volatility historically associated with smaller cryptocurrencies.

Commodity Futures Trading Commission Chair Michael Selig said the agency is considering new rules to govern AI in trading and financial advice as usage expands across financial markets. He said regulators are particularly focused on autonomous and chatbot-style systems that can execute trades or provide guidance without traditional intermediaries, raising oversight and consumer protection concerns.

The House has scheduled a vote next week on a bipartisan housing affordability bill that maintains restrictions on Wall Street's purchase of single-family homes but scales back the Senate's limitations on institutional investors. The House bill also includes a five-year ban on the Federal Reserve issuing a digital dollar and 12 community banking provisions.

Jerome Powell's eight-year tenure as Federal Reserve chair was defined by crisis management, persistent inflation and sustained political pressure. He earned broad credit for the Fed's aggressive pandemic response and for ultimately lowering inflation without triggering a recession. Powell also spent much of his tenure defending the Fed's independence amid unprecedented White House pressure.