JEROME POWELL'S FATE IS CRITICAL TO BIDEN PRESIDENCY — WSJ's Greg Ip: "Few things matter more to the success of … Biden's administration than employment and inflation, and few institutions influence those more than the Federal Reserve. Which is why so much is riding on whether Mr. Biden decides in coming months to reappoint or replace its chairman, Jerome Powell, whose four-year term expires next February. "Presidents going back to Ronald Reagan reappointed chairmen installed by their predecessors, nurturing the institution's reputation for nonpartisan independence. President Trump broke that tradition by replacing Chairwoman Janet Yellen, a Democrat, after a single term, with Mr. Powell, a Republican." WARREN LABELS DIMON 'STAR OF THE OVERDRAFT SHOW' — Bloomberg's Robert Schmidt: "JPMorgan Chase & Co.'s Jamie Dimon is the longest serving bank chief who testified before Congress Wednesday, but to the Senate's biggest critic of Wall Street, he's also "the star of the overdraft show." "Massachusetts Democrat Elizabeth Warren lit into Dimon, as she sought to make the point that banks kept charging onerous fees to customers struggling during the pandemic -- even as regulators in Washington eased rules for lenders. JPMorgan, Warren noted, made almost $1.5 billion from overdrafts last year, seven times more per account than its competitors. Still, it didn't automatically waive the penalties as the government had suggested. BANK CEOS OUTLINE PANDEMIC SUPPORT — AP's Ken Sweet and Marcy Gordon: "Eager to lay out their support for struggling consumers and small businesses in the pandemic, the CEOs of the six biggest U.S. banks went before Congress Wednesday. But lawmakers focused more keenly in a Senate hearing on the contentious social and political issues that are dividing the country. "Climate change, voting rights and racial inequity animated the debate and questioning of the executives in a hearing by the Senate Banking Committee, as Democrats demanded the Wall Street powerhouses do more to help struggling minority communities and Republicans warned against promoting social activism through banking practices." BANK PROFITS ROSE 29 PERCENT — Reuters' Katanga Johnson: "U.S. bank profits rose 29.1 percent during the first quarter of 2021 from the previous quarter as banks adjusted expectations for future credit losses downward, a bank regulator said on Wednesday. "The industry posted $76.8 billion in first-quarter profits, up from $58.3 billion a year prior and $17.3 billion in the final quarter of 2020, the U.S. Federal Deposit Insurance Corporation said in its quarterly banking profile report." MORTGAGE APPLICATIONS TICK DOWN AS REFINANCE ACTIVITY DECLINES — Reuters Evan Sully: "Mortgage applications decreased last week as fewer homeowners sought to refinance their loans, offsetting a modest rise in applications for loans to buy homes. "The Mortgage Bankers Association (MBA) said on Wednesday its seasonally adjusted Purchase Index decreased 4.2 percent in the week ended May 21 from a week earlier, reflecting a 7.2 percent decline in applications for refinancing." MORE TRUMP ADMINISTRATION OFFICIALS HEAD TO K STREET — The tax lobbying firm Federal Policy Grouphas hired Aharon Friedman, making him one of the latest former Trump administration officials to head to K Street. Friedman was a senior adviser to Dave Kautter, the Treasury Department's assistant secretary for tax policy. He's also a former senior tax counsel on the House Ways and Means Committee and "played a key role" in helping to pass the 2017 tax law, Ken Kies, Federal Policy Group's managing director, said in a statement. | 
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