Greetings,

The future of Federal Reserve independence is in focus today, with lawmakers currently grilling Kevin Warsh, President Donald Trump's nominee to chair the central bank, in a confirmation hearing. See what to expect below.

Also in this edition:

• Labor Secretary Chavez-DeRemer resigns
• Swift standardizing CX for cross-border payments
• SEC's Atkins discusses agency changes
• Chord Music to issue $500M in bonds backed by royalties

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Kevin Warsh's confirmation hearing for Federal Reserve chairmanship is expected to focus on the central bank's independence from President Donald Trump, but Warsh's ambition to restore the Fed's credibility and discipline is the more important story, according to this editorial from The Wall Street Journal. Warsh has criticized the Fed's performance since the 2000s, particularly its handling of quantitative easing and balance sheet expansion, and aims to reduce the Fed's balance sheet and minimize its involvement in political matters.

Lori Chavez-DeRemer has resigned as Labor Secretary from the Trump administration amid an investigation into alleged professional misconduct, including misuse of agency resources and an affair with a security team member. She will transition to the private sector, with Deputy Labor Secretary Keith Sonderling stepping in as Acting Secretary.

Swift is implementing a new framework to standardize the customer experience for retail cross-border payments, aiming to match the seamlessness of domestic transactions. This initiative comes as Swift faces competition from emerging instant payment technologies like Visa Direct, Mastercard Move, and stablecoins. Over 25 banks have committed to adopting this framework by June, with the number expected to grow by year-end. The framework focuses on transparency and predictability, offering upfront cost details and tracking capabilities for payments.

SEC chair Paul Atkins discusses his priorities one year into his role at the regulator. "I promised a new day at the SEC when I came aboard and we have, we've pivoted from the old practice of regulation through enforcement and the opaqueness of the agency," he said. Atkins also discussed the IPO market, prediction markets and private credit risks.

Chord Music Partners is issuing $500 million in bonds backed by royalties from a catalog featuring artists such as Morgan Wallen, Diplo and Twenty One Pilots. The bonds, to be issued via Canon Music Issuer Trust, are supported by a music portfolio valued at $830 million and containing over 3,750 works. The catalog's average age is about 10 years, with nearly half of its tracks released more than a decade ago.