US Treasury Secretary Scott Bessent called the inflation surge from the war with Iran a "short-term blip" and defended US President Donald Trump's economic management in a US Senate hearing on Wednesday. Bessent emphasized the transitory nature of the price increases, which have largely resulted from Tehran's closure of the Strait of Hormuz, a move that has led to a 40% rise in gasoline and diesel prices. Bessent also reaffirmed his commitment to reducing the federal budget deficit to below 4%

The US Commodity Futures Trading Commission has ended its long-standing settlement "gag rule," allowing firms and individuals that settle enforcement cases to publicly dispute or criticize allegations. The move aligns the derivatives regulator with the US Securities and Exchange Commission, which abolished a similar policy last month, and applies to both future and existing settlements.

BOJ Governor Kazuo Ueda signaled a stronger focus on combating inflation, indicating policymakers may raise rates even if energy-driven price pressures stem from external shocks. The shift has reinforced market expectations for a June rate hike and suggests a more conventional tightening cycle as inflation risks take priority.

The European Supervisory Authorities have released their first annual report on major information and communication technology incidents under the Digital Operational Resilience Act, revealing that about one-third of the 3,383 incidents reported in the EU had cross-border impacts. The report highlights the increasing interconnectedness of ICT risks, driven mainly by system failures and external events, and emphasizes the need for robust third-party risk management and high cybersecurity standards, particularly in light of advanced artificial intelligence tools.

The US Federal Reserve's new supervisory framework has led to a significant increase in the number of large banks considered well-managed, according to the latest Fed supervision and regulation report. About 80% of banks with assets exceeding $100 billion are rated as well-managed, up from 60% a year earlier and 40% in 2024. The report also detailed emerging risks, such as the rapid growth of lending to nonbank financial institutions.

US Treasury Secretary Scott Bessent has urged lawmakers to pass the Clarity Act, a major cryptocurrency market structure bill, this summer. The bill is stalled in the US Senate over issues such as stablecoin rewards and software developer protections. During a Senate Finance Committee hearing, Bessent also noted that the Treasury is progressing at a "deliberate speed" to establish a strategic bitcoin reserve, as directed by US President Donald Trump's executive order.

The International Swaps and Derivatives Association and the Association for Financial Markets in Europe are urging the Dutch Ministry of Finance to ensure proposed anti-dividend stripping measures target only abusive arrangements and not ordinary, commercially driven capital markets transactions. The groups say some measures could create uncertainty and duplicate existing protections, potentially harming liquidity and efficiency in the Dutch equity market.

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!