Federal prosecutors on Tuesday made a surprise visit to the Federal Reserve headquarters building that's undergoing a $2.5 billion renovation, as they continue to investigate whether Fed Chair Jerome Powell lied to Congress about the cost and scope of the project. Construction workers told the prosecutors they couldn't come on the site without prior authorization, the Wall Street Journal reported. Instead, they were referred to the Fed's lawyers to coordinate a return visit.
A worker at a construction gate outside the Federal Reserve's Eccles Building in July 2025 (Jonathan Ernst, Reuters via USA Today)The provocative move is the latest chapter in a months-long legal drama over the enormously expensive renovation of two Fed office buildings built in the 1930s, and whether Powell made false statements about the project in a congressional hearing last June. Specifically, Powell disputed media reports and accusations from administration officials and congressional Republicans that the project had extravagant design features, such as a VIP dining room, premium marble, water features and a rooftop terrace garden.
Last year, Office of Management and Budget Director Russell Vought reported that the $2.5 billion cost was $700 million over budget. President Trump, who has repeatedly criticized Powell for not pushing interest even lower than they are, was quick to condemn the Fed director for the steep price of the project. “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful,” he said last year. More recently, he said the lead contractor "is probably one of the richest men in the country right now."
The ongoing drama had a moment of comic relief in July, when Trump joined Powell in touring the construction site with reporters tagging along:
JUST IN: President Trump starts arguing with a clearly uncomfortable Jerome Powell as the two wear their hard hats.
Trump: So we're taking a look and it looks like it's about 3.1 billion.
Powell: I'm not aware of that.
Trump: Yeah, it just came out.
Powell: Yeah, I haven't… pic.twitter.com/CKAAvd0lvp
Last month, US District Judge James Boasberg threw out two subpoenas that federal prosecutors had issued to the Fed. “There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” wrote Boasberg, an Obama appointee. Tuesday's surprise visit to the construction zone signals the DOJ's dedication to chasing the case.
An excavator claws the earth beneath the Fed's 1951 Constitution Ave building in July 2025 (Reuters via USA Today)“Any construction project that has cost overruns of almost 80 percent over the original construction budget deserves some serious review,” US Attorney for the District of Columbia Jeanine Pirro told the Journal on Tuesday. “And these people are in charge of monetary policy in the United States?” Pirro, a long-time Trump ally, gave a green light to the investigation in November.
Powell’s term as chair will expire on May 15, though his underlying seat on the Fed’s Board of Governors doesn’t end until 2028. In January, Trump nominated Kevin Warsh to replace him, but his Senate confirmation is being held up by Republican North Carolina Sen. Thom Tillis, who said he won't vote to advance Warsh's nomination until the DOJ investigation of Powell and the Fed is complete. Powell has said he'll stay on as chair until his successor is confirmed. Fed chairs usually give up their Board of Governors seat after leaving the top job, but Powell has said he will make a decision on that "based on what I think is best for our institution and the people we serve.”
Tyler Durden Wed, 04/15/2026 - 10:05Just when you thought you’d seen the last of the AI pivot idiocy…
Allbirds (yes, the wool sneaker people) is mooning—up as much as 360%—after announcing it’s ditching shoes and pivoting to, of course, AI. This comes just weeks after agreeing to sell off its brand and footwear business for $39 million, according to Sherwood News.
The plan? Rebrand as “NewBird AI,” raise $50 million, and reinvent itself as a GPU-as-a-Service / AI cloud company. Translation: buy a bunch of high-powered GPUs and rent them out to companies desperate for AI compute. The company's press release out Wednesday morning said: "Following its prior announcement that it has entered into a definitive agreement to sell the Allbirds brand and footwear assets to American Exchange Group, which intends to continue to build on Allbirds’ legacy and deliver compelling products to Allbirds’ customers, Allbirds, Inc. today announced the execution of a definitive agreement with an institutional investor for a $50 million convertible financing facility."
It continues: "The Facility, which is expected to close during the second quarter of 2026, will enable the Company to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider. In connection with this pivot, the Company anticipates changing its name to “NewBird AI.”"
"NewBird AI expects to use initial capital from the Facility to acquire high-performance GPU assets, which will be deployed to serve customers requiring dedicated access to AI compute capacity. NewBird AI’s long-term vision is to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider. Over time, the Company intends to grow its neocloud platform by expanding its compute and service offerings, deepening partnerships with operators and customers, and evaluating strategic M&A opportunities," the release continues.
It adds:
The rise of AI development and adoption has created unprecedented structural demand for specialized, high-performance compute that the market is struggling to meet. Global enterprise spending on AI services and data center investment are on the rise. At the same time, GPU procurement lead times are increasing for high-end hardware, North American data center vacancy rates have reached historic lows, and market-wide compute capacity coming online through mid-2026 is already fully committed. The result is a market where enterprises, AI developers, and research organizations are unable to secure the compute resources they need to build, train and run AI at scale.
NewBird AI is being built to help close that gap. The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service.
In the process, we're guessing they’ll also scrub references to their environmental mission—because nothing says sustainability like a rack of energy-hungry GPUs.
The pitch is that insatiable AI demand will carry them back toward their former $4 billion valuation.
At this rate, we'll be back to Chamath SPACs and gamma squeezes just like the good ole' days of Covid in just weeks. Who knew that apparently, selling compute to tech execs is the new, more durable version of selling them “eco-friendly” sneakers?
Tyler Durden Wed, 04/15/2026 - 09:45Diana Choyleva wrote an excellent editorial for the Wall Street Journal entitled “The Iran War Is A Boon For The Petrodollar.”
She pushes back against claims that the Iran conflict is accelerating the death of the petrodollar.
Instead, RealInvestmentAdvice.com points out that she argues the opposite: between Iran and Venezuela, the U.S. is defending and bolstering dollar dominance in the oil trade.
The 75-year-old petrodollar system rests on oil being priced and traded in dollars, which keeps the dollar prominent in all global trade.
China has been undermining the petrodollar through yuan settlement systems and by deepening its ties with some Arab nations.
Rather than Iran being a “perfect storm” weakening the petrodollar, as some argue, Choyleva sees American military engagement in Iran as supportive of the dollar.
Simply, control the flow of oil, and you control the currency it’s traded in.
Most Arab nations back the US campaign against Iran. Importantly, “the security commitment was tested; it held.”
This reinforced the security-for-oil-pricing bargain that underpins the petrodollar system.
The removal of Venezuelan President Maduro and influence over Venezuelan oil accomplishes similar goals.
If the US controls Western Hemisphere oil reserves, it would command more oil than OPEC combined, thus providing enormous leverage for keeping oil priced in dollars.
The author sees two scenarios for how the war ends.
First, an agreement that gives the U.S. influence over Iranian oil flows.
Second, US forces seize Kharg Island and police the Strait of Hormuz.
In her words, controlling “the choke point through which a fifth of the world’s oil flows.”
Either way, both events lead to more dollar-based oil trades, not less.
She concludes that "those who conclude that the petrodollar is already in its death throes are reading the map upside down. The storm is real. The dollar is fighting back."
Tyler Durden Wed, 04/15/2026 - 09:10Authored by Steve Watson via Modernity.news,
Another historic church lies in ashes after a major fire tore through Saint-Romain, Quebec, last night. The building, whose construction began in 1893, is the latest casualty in a relentless campaign against Canada’s Christian institutions that has seen arsons more than double since 2021.
A historic church, originally built in 1893 and standing for over a century, was destroyed by flames Monday evening in Saint-Romain, between Beauce and Estrie in the province of Quebec. pic.twitter.com/uyq0K1cjx2
— Alexandra Lavoie (@ThevoiceAlexa) April 14, 2026The post, which included video of the blaze, has ignited widespread outrage across X, with people quick to assume who the likely culprits are.
Another church set on fire last night, this time in Saint-Romain, Quebec.
Invaders are attacking our women, children and every fabric of our societies.
All while politicians give them preferential treatment and put laws in place to protect them from even simple criticism. pic.twitter.com/zaFxKZNz2p
Another Church Fire tonight in Saint-Romain, Quebec ??
Construction of this church began in 1893.
According to CBC News' 2024 investigation (covering May 2021 to Dec 2023), at least 33 Canadian churches burned to the ground.
24 confirmed arsons, only 2 were accidental, rest… pic.twitter.com/sQOBXAIXUg
That CBC News investigation documented the surge in detail. A subsequent Macdonald-Laurier Institute report confirmed arson attacks on religious institutions more than doubled from pre-2021 baselines, with fewer than 4% of cases resulting in charges—leaving over 96% unsolved.
Western nations are watching the same erosion. In the UK, churches face more than 10 crimes every single day.
Prime Minister Kier Starmer’s selective outrage—furious over a mosque incident yet silent as churches literally burn to the ground has added to the outrage.
The same thing is happening all over Europe.
Politicians on both sides of the Atlantic rush to condemn “hate” when it suits their narrative, yet the destruction of Christian landmarks draws shrugs or excuses despite most cases remaining unsolved.
Mass immigration continues unchecked, with critics muzzled by speech laws while churches, the backbone of Western communities, are erased.
Responses on X captured the frustration. One user noted: “Churches are burning around the world And yet they keep telling us there’s nothing to see. Funny how the arsonists are never caught.” Another warned: “This is what muslims do as they conquer new areas. They destroy the religions sites of the conquered people. This has always been their way.”
Historic buildings that stood for over a century or more are torched while authorities prioritize everything except protecting the heritage that built their nations.
Canada—and the broader West—cannot afford more “coincidences.” Without border security, law enforcement that actually prosecutes, and leaders who value their own civilization over imported grievances, the fires will keep coming.
Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.
Tyler Durden Wed, 04/15/2026 - 08:50US equity futures are flat following yesterday’s rally as market awaits news on the Iran war resolution and as we traverse earnings season. As of 8:15am ET, S&P 500 futures are little changed after the benchmark closed within a whisker of a record. Risk sentiment took a small knock in recent trade after Iran cautioned that it will not allow shipments to or from the Gulf if the US blockade remain.Nasdaq futures are fractionally in the green, and set for an 11th consecutive gain as the massive short squeeze/CTA forced buying continues: in premarket trading, Mag7 / Semis are mixed, Discretionary and Staples are both stronger, Fins / Indu are leading Cyclicals with weakness in Materials. Bank of America and Morgan Stanley rose in premarket trading as their equity traders posted strong revenue beats. Europe’s Stoxx 600 traded flat, while China’s mainland blue-chip index became the latest in Asia to recoup losses since the Iranian war began. Brent erased early losses to rise 1% toward $96 a barrel as the US pressed ahead with a naval blockade of the Strait of Hormuz. Treasuries edged lower, with the two-year yield rising one basis point to 3.76% and the 10Y rising 2bps to 4.27%. The dollar is slightly stronger which would break a 7 session losing streak if gains hold while gold fell toward $4,800 an ounce. Other commodities are mixed with Ags, Base metals, and the Energy complex ex-natgas bid. Today’s macro data focus is on Beige Book, TIC data (keep an eye on buys/sells of Trsys), Housing prices, Empire Mfg, and Import/Export prices.
In premarket trading, Mag 7 stocks are mixed (Microsoft +0.6%, Tesla +0.5%, Meta +0.1%, Apple -0.04%, Alphabet -0.2%, Amazon -0.08%, Nvidia -0.1%)
In corporate news, Anthropic has received offers from investors for a new round of funding that could value the company at about $800 billion or higher. Meta anounced an expanded multibillion-dollar partnership with Broadcom to design and build custom chips for AI. Stellantis’s global shipments jumped 12% in the first quarter, led by a surge in demand in North America for its refreshed Jeep and Ram models.
In the latest Middle East developments, as US/Iran move towards a second official negotiation, another aircraft carrier (USS George HW Bush) is set to arrive with additional soldiers and war ships around Apr 21, with the ceasefire set to expire on Apr 22; this carrier group’s route appears to be avoiding the Suez Canal / Red Sea / Bab el-Mandeb Strait. The USS Abraham Lincoln has completed repairs in Crete though it is unknown if it will resume activities in the ME Conflict, which would be the third aircraft carrier. Bessent says ME Conflict is worth having some short-term economic pain for long-term gain. Iran’s state TV cited Ali Abdollahi, the commander of Iran’s joint military headquarters, who warned that if the US continues to impose a naval blockade in the region and creates insecurity for Iran’s ships, “this action by the US will constitute a prelude to a breach of the ceasefire.” If the blockade continues, Iran’s armed forces “will not permit any exports or imports to continue in the Persian Gulf, the Sea of Oman or the Red Sea.”
Meanwhile, bank earnings point to a generally healthy consumer and corporate sector, both able to withstand the supply chain shock emanating from the Middle East without experiencing stagflation / recession.
President Trump told the New York Post that talks could resume “over the next two days” and said in a Fox Business interview the war is “close to over.” Mediators moved closer to extending the ceasefire between the two parties, the Associated Press reported.
Investors have been piling back into stocks even with no clear end in sight to the war, which has choked off around a fifth of global crude supplies and risked a surge in inflation that could still prompt central banks to tighten policy.
“Amid all the uncertainty, I consider it warranted to re-focus on the outlook beyond the war,” said Holger Schmieding, chief economist at Berenberg. “A key driver of markets is that the war-related dash for liquidity is over and partly reversing. That helps the more risky assets.”
Technology shares in particular have been snapped up after lagging the market for much of the year, with the Nasdaq 100 notching its longest stretch of daily wins since 2021. In just the past two sessions, a popular exchange-traded fund that tracks the software industry is up 6.4%. Oracle Corp. has soared 18% and Microsoft Corp. and Palantir Technologies Inc. have gained 6%.
“The US tech sector, including the Magnificent Seven, is much cheaper today than six months ago,” said Lilian Chovin, head of asset allocation at Coutts & Co. “Concerns around the Middle East won’t disappear all of a sudden, but the ability of those companies to generate earnings in a difficult macro environment remains very attractive.”
With the earnings season now in full swing, investors will watch for signs of whether the conflict is denting the outlook for earnings and whether corporates and consumers are cutting back on spending amid the uncertainty. In Europe, ASML Holding NV shares fell 0.5% as a weaker-than-expected sales outlook for the second quarter tempered a raised full-year forecast for the maker of advanced chipmaking machines. Luxury firms Hermes International SCA and Kering SA slumped after disappointing sales updates.
It’s still early in the earnings season, but Vital Knowledge founder Adam Crisafulli said he’s “impressed by the resiliency of Corporate America” so far. Management teams at the likes of Citigroup, Delta Airlines and JPMorgan have pointed to relatively stable trends in terms of customer spending and activity, he said. That’s helping the narrative of US strength over the rest of the world. In Europe, luxury giants Hermès and Kering both reported poor results as the war crimped sales.
Financials dominate the first week of earnings season, but remain bottom of the pile in sector returns for the year. Morgan Stanley is expected to post record equity-trading revenue, while BofA’s top-line gains and cost control in 1Q should usher in positive operating leverage, according to BI.
Elsewhere, chip equipment maker ASML’s CEO expects chip demand to outpace supply “for the foreseeable future,” creating “a strong constraint” in various markets from AI to mobile and PC. These supply/demand dynamics are showing up in the global smartphone market, which suffered its first decline since 2023 in 1Q, according to market tracker IDC. The memory crunch and war in Iran are likely to elevate costs and constrain growth further in 2026.
“Earnings will be key for fundamental investors to step in and chase or fade,” said Emmanuel Cau, head of European equity strategy at Barclays Plc. With “stocks near year-to-date highs, it feels like easy gains are behind us and fundamentals should prevail again.”
In geopolitics, Treasury Secretary Scott Bessent told the BBC that the Iran war is worth a “small bit of economic pain,” ahead of what is likely to be a tense meeting with his UK counterpart Rachel Reeves. Trump described the relationship with the UK as “sad,” adding that the trade deal between the countries “can always be changed.” Chinese President Xi Jinping pledged deeper bilateral coordination with Russia.
European indices mostly tilt lower with the broad Stoxx 600 down 0.1% with technology and health care shares leading gains, while consumer products and energy stocks are the biggest laggards. The CAC 40 lags with losses of 0.6% following disappointing earnings from Hermes and Kering, with the former posting its largest decline on record. Here are the biggest movers Wednesday:
Earlier in the session, stocks in Asia gained after the US and Iran stepped up efforts to arrange a second round of peace talks, reviving hopes for an end to six weeks of hostilities in the Middle East that fueled an energy crisis. The MSCI Asia Pacific Index rose as much as 1.4%, led by gains in TSMC and Samsung Electronics. A gauge of the region’s technology stocks jumped as much as 2.9% to an all-time high, tracking an overnight rally on Wall Street. South Korea’s Kospi outperformed major markets. Thailand was closed for a holiday.
Renewed optimism over Middle East stability has shifted investor focus back toward technology earnings and the outlook for further AI-driven capital expenditure. While geopolitics risks linger, fatigue is tempering reactions to incremental developments. Stocks advanced in Hong Kong, Japan and the Philippines. Shares also traded higher in India as trading resumed after a holiday.
In rates, treasuries are marginally cheaper across the curve in early US trading, having erased small gains spurred by AP report that the US and Iran agreed in principle to extend a truce. US 2- to 10-year yields are 1bp-2bp cheaper with long-end little changed, flattening 5s30s spread by less than 1bp; 10-year near 4.26% slightly underperforms German and UK counterparts. US session has few scheduled events beyond Fed Beige Book release. Corporate new-issue calendar has begun to build, with a busy day expected after several borrowers stood down Tuesday.
In FX, the Bloomberg Dollar Spot Index has just veered into positive territory, up 0.1% after a run of seven consecutive losses.
In commodities, oil is higher following sharp drop from Monday’s high that helped drive gains for US stocks. WTI crude oil futures remain about 1.5% higher with the latest update from Iran sending prices to session highs. Spot gold and silver have ebbed lower throughout the session, showing respective losses of 1% and 1.3%. Bitcoin loses 0.3%.
The US economic data calendar includes April Empire manufacturing and March import/export price index (8:30am), April NAHB housing market index (10am) and February TIC flows (4pm). Fed speaker slate includes Governor Barr and Cleveland’s Hammack (8:30am) and Governor Bowman (1:45pm); Beige Book released 2pm.
Market Snapshot
Top Overnight News
Iran War
A more detailed look at global markets courtesy of Newsquawk
APAC stocks were mostly higher as the region took its cue from the rally on Wall St amid continued hopes regarding US-Iran talks, while President Trump suggested talks could occur during the next two days. ASX 200 eked mild gains, but with upside capped as strength in tech, gold miners and health care was offset by losses in energy and some defensives, while trade was also restricted by a lack of data and drivers. Nikkei 225 rallied above the 58,000 level, with the positive risk sentiment facilitated by the recent decline in oil prices and the much stronger-than-expected Machinery Orders. Hang Seng and Shanghai Comp were positive with the gains in Hong Kong led by tech strength, while oil majors lagged after the recent oil decline. Furthermore, the PBoC continued its meagre daily liquidity efforts through 7-day reverse repo operations, but had announced yesterday to conduct CNY 500bln of 183-day outright reverse repos for today.
Top Asian News
European bourses (STOXX 600 U/C) point to a mixed picture, primarily driven by diverging earnings. The CAC 40 (-0.6%) is the big underperformer following losses in luxury names (Hermes -9%, Kering -9.1%), while the AEX (+0.1%) slightly outperforms as ASML (+0.1%) gains. As mentioned above, Q1 earnings reports by ASML, Kering and Hermes have been of focus this morning. Starting with Europe’s most valuable company, ASML reported sales that beat estimates while also raising its FY26 revenue guidance. The CEO highlighted that demand for chips is outpacing supply and that order intake continues to be very strong. Despite the strong report, shares initially fell slightly at the open, possibly on the softer Q2 sales guidance, but has reversed course since.
Top European News
Trade/Tariffs
FX
Central Banks
Fixed Income
Commodities
US Event Calendar
DB's Jim Reid concludes the overnight wrap
Hopes for a de-escalation between the US and Iran have continued to propel markets higher this morning, with Trump saying overnight that “I think it’s close to over.” So oil prices have remained steady, with Brent crude at $95.26/bbl, and the surge for risk assets has continued. Indeed, yesterday saw the S&P 500 (+1.18%) close just shy of its record high, meaning that the index is now up +9.8% over the last 10 sessions. For reference, that’s now even faster than the bounceback after Liberation Day last year, and we haven’t seen a run of gains that quick over 10 sessions since the post-Covid bounceback in April 2020. That optimism has continued overnight, with futures on the S&P 500 up +0.08%, and we’ve seen gains across Asian equities as well. For instance, the Nikkei (+0.82%), the KOSPI (+2.92%), the Hang Seng (+0.76%) and the CSI 300 (+0.17%) are all on track for a one-month high.
All that follows more positive headlines over the last 24 hours, which have led to mounting hopes that the US and Iran will be back at the negotiating table soon. Among others, Trump himself said yesterday to the New York Post that talks “could be happening over the next two days” in Pakistan. And that echoed a report from Reuters earlier in the day, which said that negotiating teams from the US and Iran could return to Islamabad this week, according to four sources. So there was a general sense that there was still a pathway towards de-escalation, and overnight, ABC’s Jonathan Karl also said that Trump told him “I think you’re going to be watching an amazing two days ahead”. Over on the Iranian side, there were also headlines suggesting they wanted a deal, with Bloomberg reporting that Iran was considering a short-term pause to shipping through the Strait of Hormuz, to avoid testing the US blockade and derailing any further peace talks.3
Nevertheless, that US blockade does remain in place, and US Central Command announced that 6 merchant ships were turned around and forced to re-enter an Iranian port during the first day of the US blockade. Overnight, the CENTCOM Commander also said that the blockade of Iran’s ports “has been fully implemented”, and that “U.S. forces have completely halted economic trade going into and out of Iran by sea”. But even with the Strait of Hormuz, investors were still hopeful about some kind of reopening, with the WSJ reporting last night that European countries were putting together plans for a coalition of countries to free up the Strait of Hormuz, which would include sending mine-clearing vessels.
Collectively, this newsflow has continued to support markets, as it’s eased investor fears about a stagflationary shock. Indeed, Brent crude oil has now closed beneath $100/bbl for over a week now, and yesterday it fell another -4.60% to $94.79/bbl. Moreover, investors continue to believe the conflict will be a temporary one, with the oil futures curve still having a sharp negative slope. For example, the 6-month Brent future was down -2.18% yesterday to $82.48/bbl, and the 12-month future was down -1.66% to $77.75/bbl.
Given all that, US markets put in a strong performance, as growing hopes for a ceasefire and lower oil prices helped to support bonds and equities. So the S&P 500 (+1.18%) closed just shy of its record high from late-January, having now risen for 9 of the last 10 sessions. That was powered by the Magnificent 7 (+5.49%), which saw its strongest performance in the last two weeks, although the small-cap Russell 2000 (+1.32%) also advanced. The hope of lower energy prices helped consumer cyclicals such as Media (+3.5%), Autos (+3.4%), and Consumer Discretionary Retail (+2.8%) to outperform, while Energy (-2.2%) and Banks (-0.9%) lagged. Meanwhile, there were further signs that the financial stress was easing more broadly, with the VIX index (-0.8pts) falling to just 18.36pts, its lowest since late-February, before the strikes began. In addition, US HY spreads (-11bps) fell to their tightest level in two months, at 268bps.
Over on the rates side, US Treasuries also rallied yesterday, with a further boost after the PPI inflation reading was softer than expected. It showed headline PPI was only up +0.5% in March (vs. +1.1% expected), meaning that the year-on-year measure only rose to +4.0% (vs. +4.6% expected). So that helped to ease fears about a larger wave of inflation, particularly after Friday’s CPI. And in turn, yields fell back across the curve yesterday, with the 2yr yield (-2.7bps) falling to 3.74%, whilst the 10yr yield (-4.5bps) fell to 4.25%. That was the lowest level on the 10yr yield since mid-March, and it’s down another -0.2bps overnight.
There was also some news on the Fed yesterday, as it was confirmed that Kevin Warsh’s nomination hearing to become Fed Chair would be held on Tuesday. So that’ll be a crucial moment for markets, as we’ll start to get a better understanding of Warsh’s policy views and where things might head over the years ahead. To date, the barrier to Warsh’s confirmation has been that Senator Thom Tillis, a retiring Republican senator on the Committee, has said he won’t support any Fed nominees until the Department of Justice probe into Chair Powell is resolved. But the committee chair Tim Scott said yesterday that “I believe that the DOJ will finish and wrap this up in the next several weeks”. The other outstanding question is whether Powell would stay on the Board of Governors once his term as Chair concludes, as his Board seat goes up until January 2028. So far, Powell hasn’t confirmed either way, only saying that he will remain on the Board while the investigation is ongoing. But in a scenario where the investigation has concluded, he hasn’t confirmed his intentions.
Staying with the US administration, Treasury Secretary Bessent said that the tariffs which were struck down by the Supreme Court could be restored to previous levels by mid-Summer. In remarks during a Wall Street Journal event, Bessent said “we will be implementing or conducting Section 301 studies, so the tariffs could be back in place at the previous level by beginning of July.” As a reminder, since the IEEPA tariffs were struck down, the administration have implemented a 10% global tariff, but that will expire on July 24 without congressional authorisation.
Earlier in Europe, markets also put in a strong performance, with the STOXX 600 (+0.99%) up to a one-month high. The main driver was the decline in oil prices, and we also heard from ECB President Lagarde, who said that the ECB didn’t have a tightening bias. So that combination helped to ease investor concerns about an imminent ECB rate hike, with market pricing for an April hike down to 28% by the close, having been at 42% the previous day. So that helped bonds to rally as well, with yields on 10yr bunds (-6.8bps), OATs (-9.1bps) and BTPs (-10.7bps) all moving lower.
Finally, the IMF published their latest World Economic Outlook yesterday, where they downgraded their global growth forecasts and upgraded inflation. So global growth is now seen at +3.1% this year, down two-tenths from January. The downgrades were biggest in the areas directly affected by the conflict, with the Middle East and Central Asia slashed by two points to +1.9%. Meanwhile on inflation, they now see global consumer prices up +4.4% this year, six-tenths above the January forecast.
Looking at the day ahead, central bank speakers include ECB President Lagarde, and the ECB’s Cipollone, Escriva, Villeroy and Schnabel, the Fed’s Barr and Bowman, and BoE Governor Bailey. Data releases include Euro Area industrial production for February. Finally, earnings releases include Bank of America and Morgan Stanley.
Tyler Durden Wed, 04/15/2026 - 08:38Nvidia unveiled the world's first open-source AI models to accelerate the development of quantum computing. The news sent shares of several Asian software and cybersecurity firms soaring and sparked a rally in U.S.-listed quantum stocks in premarket trading.
Nvidia's Ising open-model family is designed to improve two critical areas: quantum processor calibration and quantum error correction. Nvidia claims the models deliver calibration capabilities it describes as industry-leading, while its decoding tools operate 2.5 times faster and achieve up to 3x greater accuracy than traditional open-source approaches.
"AI is essential to making quantum computing practical," Nvidia CEO Jensen Huang stated.
Jensen continued, "With Ising, AI becomes the control plane, the operating system of quantum machines, transforming fragile qubits into scalable and reliable quantum-GPU systems."
In South Korea, shares of software and cybersecurity firms, including Axgate Co. and ICTK Co., jumped to the 30% daily trading limit. China's GuoChuang Software Co. and QuantumCTek Co., along with Japan's Fixstars Corp., rose at least 8%.
In the U.S., D-Wave Quantum Inc. (QBTS) rose 10%, while IonQ Inc. (IONQ) and Rigetti Computing Inc. (RGTI) climbed 5.9% following the Nvidia news.
Amid the hype in quantum stocks, Bloomberg Intelligence analyst Robert Lea reminded traders, "While these tools can potentially help accelerate developments, the deployment of practical, large-scale quantum computing remains a long way off."
Tyler Durden Wed, 04/15/2026 - 08:20