World Street | Gold hits record high, Crypto rally, Jamie Dimon's succession plans and more

World Street offers a sneak peek into the world of business and economy.

Gold soars to record high as investors sail through cautious remarks from Fed officials. Cryptocurrencies surged, driven by Ether and Bitcoin. JPMorgan's CEO Jamie Dimon discussed about his succession plans at the company's investors day. The bank also raised its growth guidance. Washington Federal Bank plans to sell a portfolio of its commercial multi-family real estate loans to Bank of America.

Goldilocks

Gold soared to its record high as investors weighed in the cautious remarks from the Federal Reserve officials about controlling inflation. Fed officials like Vice Chair Philip Jefferson and Michael Barr stressed the need for more time to see if inflation is slowing down and if restrictive policies are working. Atlanta Fed President Raphael Bostic noted it will take a while for the central bank to be sure that prices are going down for good. In the midst of all this, gold and silver hit their highest all-time peaks.

Crypto rush

Cryptocurrencies witnessed strong buying, particularly led by Ether amid increasing expectations of the US Securities and Exchange Commission (SEC) approving spot ether exchange-traded funds (ETFs). This anticipation propelled Bitcoin beyond $70,200 and Ether surged by over 13 percent to surpass the $3500 mark. Bitcoin's rise also signifies an 82.3 percent increase from its yearly low of $38,505, recorded in late January.

Succession plans

JPMorgan Chase & Co.'s CEO mentioned to shareholders that his tenure as CEO won't be lasting another five years, highlighting the bank's progress in succession planning during the firm's investor day. Speculation about who will lead the bank after Jamie Dimon, who has been CEO since 2006, has been a topic of interest in the industry. Dimon, 68, has been taking steps to groom potential successors, including moving key executives into senior positions earlier this year.

Guidance Boost

JPMorgan raised its net interest income forecast to $91 billion from $90 billion, citing fewer expected interest rate cuts by the Fed and fewer customers shifting to higher-yielding accounts. In Q1, net interest income for the lender was $23.1 billion, breaking a streak of seven record-setting quarters.

JPMorgan also talked about the potential fallout from proposed capital requirement increases for big banks, though regulators may scale back the plans. Despite this, the bank aims for a 17 percent return on tangible common equity over the medium term.

Changing hands

Washington Federal Bank is set to sell a portfolio of its commercial multi-family real estate loans to Bank of America for approximately $2.9 billion. This move aims to reduce the regional lender's exposure to the troubled commercial real estate (CRE) sector, which has been impacted by higher borrowing costs and lower occupancy rates, drawing regulatory scrutiny.

The portfolio consists of 2,000 loans with an aggregate unpaid principal balance of $3.2 billion. Following the transaction, Bank of America plans to engage in a structured transaction or loan sale with one or more funds of Pacific Investment Management.