Key Takeaways
- Kevin Warsh officially took the oath of office as Chairman of the Federal Reserve, succeeding Jerome Powell and promising a "reform-oriented" approach to monetary policy.
- Anthropic is finalizing a massive funding round exceeding $30 billion, which could value the AI startup at $900 billion as its revenue run rate nears $50 billion.
- The Trump administration announced a major immigration shift, requiring most non-citizens seeking Green Cards to leave the U.S. and apply from their home countries.
- U.S. equity markets closed higher, with the Dow Jones rising 0.66% to finish at 50,617.75, while the S&P 500 gained 0.44%.
- Iran peace negotiations remain deadlocked over oil sanctions, despite reports of progress on other diplomatic fronts and a potential temporary waiver.
Warsh Takes Helm at the Federal Reserve
In a high-profile ceremony at the White House, Kevin Warsh was sworn in as the new Chairman of the Federal Reserve System. Warsh, a former Fed governor and Morgan Stanley executive, was confirmed by the Senate in a 55-45 vote. In his inaugural remarks, Warsh pledged to lead a "reform-oriented" central bank that escapes "static frameworks" to prioritize price stability and stronger economic growth.
President Trump, who attended the ceremony, emphasized his desire for an "independent" Fed but reiterated his long-standing call for lower interest rates. While Jerome Powell intends to remain on the Board of Governors until his term expires in 2028, the transition marks a significant pivot in U.S. monetary leadership. The Federal Open Market Committee (FOMC) unanimously selected Warsh as its chairman immediately following the oath.
Anthropic Nears Record $900B Valuation
Artificial intelligence powerhouse Anthropic is reportedly closing a new funding round as soon as next week that could exceed $30 billion. Sources familiar with the matter indicate the financing would value the company at approximately $900 billion, potentially surpassing OpenAI as the world's most valuable private AI firm. The surge in valuation is driven by an explosive revenue run rate, which the company expects to top $50 billion next month.
The company is also moving forward with its "Mythos-class" models, focusing on advanced cybersecurity safeguards. Major tech partners, including Google (GOOGL) and Amazon (AMZN), continue to play a critical role in Anthropic’s infrastructure. Reports suggest the company is working with partners to expand its "Glasswing" initiative next week, even as it prepares for a potential IPO as early as October 2026.
Major Shifts in Immigration and Trade
The Trump administration has unveiled a sweeping new policy requiring the majority of immigrants seeking permanent residency to leave the U.S. before applying for a Green Card. This move aims to eliminate "loopholes" that allowed temporary visa holders to adjust their status while remaining in the country. Critics warn the policy could disrupt hundreds of thousands of families and businesses, particularly in the tech and healthcare sectors.
On the trade and diplomatic front, President Trump described Chinese President Xi Jinping as a "good man" but remained non-committal on future engagements with Taiwan. Sources indicate that a call between Trump and Taiwan’s President Lai Ching-te is not currently planned. Domestically, Trump also addressed New York’s fiscal health, warning that the state "can never be the same" if it loses its tax base, while praising Representative Mike Lawler for his work on SALT deduction issues.
Geopolitical Tensions and Energy Markets
Negotiations between the U.S. and Iran have reached a critical juncture. While President Trump stated that "Iran wants to settle so badly," Iranian officials clarified that lifting sanctions on oil exports is not yet part of the active peace negotiations. Reports from Tasnim News Agency suggest that while some progress has been made, no final agreement will be reached until all disputed matters, including frozen assets and naval blockades, are resolved.
The uncertainty in the Middle East continues to weigh on energy outlooks. Trump also offered conflicting views on the automotive sector, stating "we love electric cars" while simultaneously noting that "not everyone wants to have an electric car." This follows his administration's earlier moves to terminate federal EV mandates, a policy shift that has created a complex landscape for manufacturers like Tesla (TSLA).
Market Wrap-Up
Wall Street finished the week on a positive note. The Dow Jones Industrial Average unofficially closed up 332.09 points, or 0.66%, to cross the 50,600 mark. The S&P 500 rose 0.44% to 7,478.39, and the Nasdaq Composite added 0.23% to finish at 26,353.83. Investors appeared buoyed by the formalization of the Fed leadership transition and the robust growth figures reported in the technology sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.