21 articles found
6:00 PM (UTC): U.S. Fed to Clarify Its Stand on Interest Rate
The likelihood is high, at 99%, that the interest rate will stay the same. This is because the Federal Reserve is still gauging the effect of the current rate on the economy. Following the decision, there will be a press conference by Jerome Powell 30 minutes later. Given the potential for market shifts from his remarks, traders are advised to hold off on transactions.
Fed Official Calls for Tighter Stablecoin Regulation
Today, the Federal Reserve Bank of Philadelphia held its seventh annual fintech conference. A significant takeaway was Deputy Chair Michael Barr's pronounced concerns about the risks stablecoins, devoid of federal oversight, might pose to financial stability. On the topic of CBDCs, Barr remarked that decisions remain on the distant horizon.
Fed issues enforcement action with Farmington State Bank
The Federal Reserve enforced the closure of Farmington State Bank, a lender that has ties with both FTX and Alameda Research. But what led to this? The bank's silent move towards a digital-centric strategy without keeping the Federal Reserve in the loop. To thicken the plot, Farmington had previously, in March 2022, secured a substantial $11.5 million funding from Alameda Research.
Goldman Sachs Envisions Gradual Fed Rate Cuts
Their economists anticipate a reduction in interest rates by late June next year, following a gradual quarterly decrease pattern. “The cuts in our forecast are driven by the desire to normalize the funds rate from a restrictive level once inflation is closer to the target,” says Jan Hatzius, a senior economist at Goldman. Goldman forecasts rate cuts in Q2 2024, expecting 25 basis point reductions per quarter with pace uncertainties. “We expect the funds rate to eventually stabilize at 3-3.25%,” say their economists.