Finance

The Department of Justice officially concluded its criminal investigation into Federal Reserve Chair Jerome Powell on April 24, significantly clearing the path for Kevin Warsh's confirmation as his successor. Markets responded by increasing the odds of Warsh's appointment to 85%, while also pricing in potential volatility shifts as the central bank prepares for a transition in monetary policy leadership.

U.S. Treasury yields ended the week higher, with the 10-year note finishing at 4.31% as investors processed resilient economic data and ongoing geopolitical tensions. Despite a temporary ceasefire in the Middle East, high energy costs have kept inflation expectations elevated, leading to a significant reduction in market-priced interest rate cuts for the remainder of 2026.

The University of Michigan's sentiment gauge registered at 49.8 in April, marking its lowest recorded level even as a two-week ceasefire took hold in the Middle East. While softening gas prices provided a slight recovery from earlier monthly losses, shoppers remain concerned about near-term inflation and the long-term impact of tariffs on consumer goods.

Bitcoin and Ethereum saw modest gains over the past five days, with Bitcoin trading in a steady range between $77,500 and $78,500. Although volatility cooled toward the end of the week, derivatives data suggests a cautious outlook among traders as leverage unwinds following a failed attempt to break the $80,000 threshold earlier in the week.