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Kraken’s newly approved Federal Reserve master account has sparked concern among regulators and banks over potential risks to financial stability, transparency, and oversight as crypto firms gain closer access to core payment infrastructure. The account, granted by the Kansas City Fed with restrictions such as limited balances and no access to interest or emergency lending, allows Kraken to process payments directly through Fedwire, bypassing traditional banks, but critics warn this could introduce operational vulnerabilities, money-laundering risks, and reduce deposits in the banking system. Lawmakers have questioned the opaque approval process and are seeking further details, while experts caution that extending Fed access to lightly regulated crypto firms, despite safeguards, may expose the financial system to new and largely untested risks.

 

Reuters

U.S. Rep. Ritchie Torres, D-N.Y., is calling on the Securities and Exchange Commission and the Commodity Futures Trading Commission to investigate trades in the oil and equity futures markets ahead of a pause in hostilities in Iran last month. Billions of dollars in futures changed hands shortly before Donald Trump announced the postponement. Financial contracts tied to at least six million barrels of oil were sold in a two-minute period. “What kind of trader would make a massive trade at 6:49 a.m., 15 minutes before a market-moving presidential announcement with billions of dollars at stake and without a hedge?” Torres said. “The only plausible answer to that question is an insider trader. Any other alternative is a statistical impossibility.”

 

Bloomberg

CNBC

NPR

Włodzimierz Czarzasty, leader of Nowa Lewica, a leftwing party in Poland’s ruling coalition, has said Donald Trump is “a leader of chaos” whose administration is also meddling in European elections.

 

Financial Times

The Federal Aviation Administration (FAA) has proposed a civil penalty of $255,000 against American Airlines for breaching drug and alcohol regulations. Between May 2019 and December 2023, the airline allowed 12 flight attendants who tested positive to return to safety-sensitive duties without completing necessary follow-up testing. The FAA said that American Airlines has 30 days to respond to the enforcement letter.

 

U.S. News

Elon Musk’s xAI has filed a lawsuit challenging Colorado’s state-level initiative to impose protections against “algorithmic discrimination” in AI systems. The lawsuit, ‌filed in U.S. District Court in Colorado, challenges Senate Bill 24-205, which imposes disclosure and risk-mitigation requirements on developers ​of so‑called "high‑risk" AI systems used in decisions involving employment, housing, ​education, health care and financial services. The law is scheduled to take effect on June 30. "Government regulation that is ​applied at the state level in a patchwork across the country ​can have the effect to hamper innovation and deter competition in an open market," ‌xAI ⁠said.

 

The HIll

Financial Times

Reuters

The Guardian

Paramount President Jeff Shell has resigned and stepped down from the board following a lawsuit alleging he disclosed confidential company information, despite an internal investigation finding no wrongdoing. The claims, brought by R.J. Cipriani, accuse Mr. Shell of sharing nonpublic details about major deals, including a $7.7bn UFC media rights agreement, though Paramount has dismissed the allegations as baseless and said Mr. Shell is leaving to focus on legal action. Mr. Shell has filed a counterclaim for defamation and extortion, and his departure was reportedly expected amid broader leadership changes following Skydance Media’s takeover.

 

Los Angeles Times

Wall Street Journal

A Washington, D.C., federal appeals court has denied a request by Anthropic for a stay in its lawsuit against the Department of Defense. The DOD officially designated Anthropic a supply chain risk last month and said the company threatened national security. The decision is not a final ruling. A spokesperson for Anthropic said in ​a statement following Wednesday's ruling that the company is confident the court will ultimately agree the supply chain risk designation is unlawful.

 

CNBC

Reuters

President Donald Trump's vow to impose a naval blockade on Iran and the Strait of Hormuz sent oil sharply higher, with Brent and WTI both jumping more than 7% as markets reopened. For CEOs and boards, the significance is immediate: the threat revives a major geopolitical choke point for global energy flows, raises the risk of renewed inflation, and could quickly feed through to transport, manufacturing and consumer costs. Analysts warn shipping volumes through the strait could remain far below prewar levels. The move also increases pressure on China and other major buyers of Iranian crude, potentially widening the conflict's economic reach. The story matters well beyond energy, with implications for supply chains, margins, central banks and corporate planning across sectors.

 

New York Times

U.S. inflation accelerated sharply to 3.3% in March, marking its highest level in two years, driven primarily by a surge in energy costs following the Iran war. Energy prices rose 12.5% year-over-year, with gasoline up 18.9% and fuel oil soaring 44.2%, pushing up transportation costs and contributing to broader price pressures, while core inflation, excluding food and energy, increased a more moderate 2.6%. Despite some easing in areas such as used-car prices and grocery inflation, rising costs in categories like apparel and airline fares, alongside falling real wages, highlight growing pressure on household finances, while economists warn that higher energy and input costs may continue to feed through into the wider economy in the coming months. The data presents a challenge for the Federal Reserve, as persistent inflation combined with a slowing labor market complicates decisions on interest rates, particularly amid concerns that businesses may continue passing higher costs on to consumers. 

 

Bloomberg

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Washington Post

Wall Street Journal

U.S. consumer sentiment has dropped to a record low in April, with the University of Michigan's index falling to 47.6 from 53.3 in March, reflecting growing concern over rising inflation linked to the Iran conflict. Consumers now expect prices to increase 4.8% over the next year, the sharpest jump in expectations in a year, driven largely by surging gasoline prices, which have climbed above $4 per gallon and are eroding purchasing power. Both current conditions and future expectations deteriorated significantly, with financial sentiment at its weakest since 2009 and long-term outlooks at levels not seen since 1980. “Comments show that many consumers blame the Iran conflict for unfavorable changes to the economy,’’ Joanne Hsu, director of the survey, said in a statement. “Economic expectations will likely improve after consumers gain confidence that the supply disruptions stemming from the Iran conflict have ended and gas prices have moderated.”

 

CNN

Bloomberg

A new Goldman Sachs report which looked at decades of worker displacement in fields hit by new technology offers a warning to AI-displaced workers who face potentially steep economic pain. “AI-driven displacement could impose lasting costs on affected workers, worsening labor market outcomes for several years,” authors Pierfrancesco Mei and Jessica Rindels wrote. The report analyzed four decades of federal data and tracked the lives of more than 20,000 Americans born between the 1950s and 1980s. The researchers found that displaced workers in jobs hit by technological shifts - such as telephone operators and typists - suffered both short- and long-term economic impacts when compared with workers who lost jobs in more stable occupations.

 

Wall Street Journal

Meta is building an AI version of CEO Mark Zuckerberg which could offer feedback to employees in real time. Zuckerberg is personally involved in training and testing his animated AI.

 

Financial Times