Federal Reserve

  • CME’s Projection on Federal Reserve’s Interest Rate Decision

    According to CME’s “Federal Reserve Observation”, the probability of the Federal Reserve maintaining interest rates unchanged in March is 34.3%, and the probability of raising interest rates by 25 basis points to the range of 4.75% to 5.00% is 65.7%; The probability of maintaining interest rates unchanged by May is 26.1%, the probability of a cumulative interest rate increase of 25 basis points is 58.2%, and the probability of a cumulative interest rate increase of 50 basis points is 15.8%. The probability of the Federal Reserve raising interest rates by 25 basis points in March is 65.7% Analysis based on this information:CME’s “Federal Reserve Observation” has projected that the possible interest rate decisions of the Federal Reserve in the coming months might lead to an increase in interest rates. The probability of maintaining interest rates unchanged in March is only 34.3%, and there is a high chance of increasing the interest rates by 25 basis points to the range of…

    03/20/2023
    121
  • Federal Reserve Increases Operating Hours of US Dollar Swap Lines

    According to reports, the Federal Reserve said that in order to improve the effectiveness of providing US dollar funds through the US dollar swap line, the central bank that currently provides US dollar operations has agreed to increase the frequency of 7-day maturity operations from weekly to daily. The increase in operating hours will begin on Monday and will continue at least until the end of April. Federal Reserve: Global Central Banks Will Increase Liquidity Through Dollar Swap Agreements Analysis based on this information:The Federal Reserve has made a move to improve the effectiveness of US dollar funds by increasing the frequency of 7-day maturity operations from weekly to daily. The central bank responsible for providing US dollar operations has agreed to these changes, which will begin on Monday and continue at least until the end of April. This decision shows a concerted effort on the part of the Federal Reserve to make ample funds available in the financial system,…

    03/20/2023
    173
  • US Senator Elizabeth Warren Criticizes Federal Reserve Chairman Powell’s Regulatory Failure

    On March 20th, according to a report in the U.S. \”Capitol Hill\” on March 19th, U.S. Senator Elizabeth Warren of Massachusetts severely criticized Federal Reserve Chairman Powell\’s

    03/20/2023
    98
  • ARB, Ordinals, Federal Reserve, Stacks: Understanding the Language of Finance

    7:00-12:00 Keyword: ARB, Ordinals, Federal Reserve, Stacks
    Summary of important developments at noon on March 20th
    IntroductionThe world of finance is full of jargon that can be di

    03/20/2023
    97
  • 186 Banks in the US at Risk

    According to reports, a recent study by economists identified 186 banks at risk. These banks face similar problems to those that led to the collapse of banks in Silicon Valley. In the process of the Federal Reserve’s rapid interest rate hike, economists evaluated individual banks in the United States. They assessed asset books and market value losses. The value of assets such as Treasury bills and mortgages may decline. This happens when new bonds offer higher interest rates. Their findings indicate potential problems. If half of these uninsured depositors were to withdraw funds quickly from any of the 186 U.S. banks, even insured depositors could face losses. This is due to insufficient assets available to all depositors. 186 banks were found to have similar risks to those of Silicon Valley banks Analysis based on this information:A recent study by economists has identified 186 banks in the US that are at risk due to similar problems that led to the collapse…

    03/18/2023
    111
  • US House of Representatives to Investigate Silicon Valley Bank and Signature Bank Collapse

    According to reports, Patrick McHenry, the chairman of the Financial Services Committee of the United States House of Representatives, a Republican from North Carolina, and Maxine Waters, a Democratic leader from California, stated in a joint statement on Friday that the House team plans to hold its first hearing on the collapse of Silicon Valley Bank (SVB) and Signature Bank on March 29, committed to “identifying the root causes of failure.”, Witnesses present will include Martin Gruenberg, Chairman of the Federal Deposit Insurance Corporation (FDIC), and Michael Barr, Vice Chairman of the Federal Reserve for Regulation. “The hearing will allow us to begin to understand the reasons and ways in which these banks have failed,” the statement said. The US House of Representatives panel plans to hold its first hearing on the collapse of SVB and Signature on March 29 Analysis based on this information:The US House of Representatives’ Financial Services Committee is set to hold its first hearing on…

    03/18/2023
    114
  • Federal Reserve to Potentially Increase Interest Rates

    According to reports, Nick Timirao, a reporter from the Wall Street Journal, said in an interview with CNBC that the Federal Reserve’s decision next week may depend on the market reaction in the coming days. He chose to raise interest rates by 25 basis points because market conditions will improve; “If we pause raising interest rates, we are worried that the credit problem will worsen, and it is best to act slowly.”. All we have heard from the Federal Reserve is that it has the tools to address financial stability issues and can therefore focus on the goal of restoring price stability. The Federal Reserve may raise interest rates by 25 basis points or keep them unchanged, depending on market reaction in the coming days Analysis based on this information:The Federal Reserve could potentially increase interest rates by 25 basis points if market conditions remain stable, according to an interview with Nick Timirao, a reporter from the Wall Street Journal,…

    03/18/2023
    148
  • Elon Musk Urges Immediate Reduction of Federal Reserve Interest Rates

    On March 18th, Tesla CEO Elon Musk said that the Federal Reserve’s interest rate needs to be lowered immediately. Musk: The Federal Reserve needs to immediately lower interest rates Analysis based on this information:Elon Musk recently made headlines when he called for an immediate reduction in the Federal Reserve’s interest rates. The CEO of Tesla and SpaceX took to Twitter on March 18th to express his concern about the current state of the economy and the impact of high interest rates on businesses and consumers. Musk argued that low interest rates are crucial for promoting economic growth and innovation, and that the current rates are hindering progress in these areas. He also suggested that the Federal Reserve’s policies are contributing to income inequality and social unrest, and that lowering interest rates could help address these issues. While Musk’s comments may seem surprising coming from someone known for their focus on technology and innovation, they reflect a growing trend among business…

    03/18/2023
    114
  • Market speculates about possible interest rate hike in March

    According to CME’s “Federal Reserve Observation”, the probability that the Federal Reserve will keep interest rates unchanged in March is 20.3%, and the probability of raising interest rates by 25 basis points to the range of 4.75% to 5.00% is 79.7%; The probability of a cumulative interest rate increase of 50 basis points by May rose to 49.2%. The probability of the Federal Reserve raising interest rates by 25 basis points in March rose to 79.7% Analysis based on this information:The Federal Reserve has been closely watched by market speculators and investors, who are eagerly awaiting the announcement of a possible interest rate hike in March. According to CME’s “Federal Reserve Observation,” the probability of keeping interest rates unchanged in March is only 20.3%; instead, the probability of raising interest rates by 25 basis points to the range of 4.75% to 5.00% is 79.7%. This means that the market is highly anticipating a potential interest rate hike. Rising interest rates…

    03/17/2023
    112
  • US Banking Industry Seeks Funding from Federal Reserve Amid Growing Tension

    It is reported that in the recent week, the US banking industry has borrowed a total of $164.8 billion from the Federal Reserve through two credit facility instruments, highlighting the increasing tension in funding after the collapse of banks in Silicon Valley. According to data released by the Federal Reserve, the amount of funds lent by the Federal Reserve through the discount window reached a record $152.85 billion in the week ended March 15, up from $4.58 billion in the previous week. The last record high was $111 billion set during the 2008 financial crisis. The data also shows that the Bank Term Funding Program launched by the Federal Reserve on Sunday lent a total of $11.9 billion. From these figures, it can be seen that the US banking system is still fragile and has not yet fully emerged from the plight of deposit funds moving after the collapse of Silicon Valley banks and Signature Bank. The balance of other…

    03/17/2023
    100
  • Blockchain Association Requests Information on Cryptocurrency “De-Banking”

    According to reports, the Blockchain Association, one of the cryptocurrency lobbying groups, has sent a Freedom of Information Act (FOIA) request to the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) to provide documents and communications related to cryptocurrency “de banking.”. It is reported that the requirements of the Freedom of Information Act are aimed at uncovering the truth behind the possibility of US cryptocurrency companies going to banking business, including more understanding of the situation where legally compliant cryptocurrency companies may close accounts. The Blockchain Association requires FDIC and the Federal Reserve to disclose documents related to encrypted “de banking” Analysis based on this information:The Blockchain Association, a cryptocurrency lobbying group, has sent a Freedom of Information Act (FOIA) request to three government agencies – the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) – to provide documents and communications related…

    03/17/2023
    142
  • Cryptocurrency as a smoke alarm for the failing financial system

    On March 17th, Arthur Hayes, the founder of BitMEX, wrote that the Federal Reserve’s Bank Term Financing Plan (BTFP) had undertaken quantitative easing of $4.4 trillion in another way, even exceeding the $4.189 trillion printed in response to the COVID crisis. Although the BTFP plan is mandated to last only one year, it will almost certainly be extended preventively. The Federal Reserve is expected to either start cutting interest rates at its upcoming March meeting or a severe recession in a few months will force it to turn. Since the outbreak of the banking crisis, the yield on two-year Treasury bills has fallen by more than 100 basis points. The market is crying out for deflation supported by the banking system, and the Federal Reserve will eventually listen to the market. In this banking crisis, cryptocurrency has once again proven to be a stinky, wasteful, smoke alarm for the legal tender driven Western financial system. Founder of BitMEX: BTFP plans…

    03/17/2023
    117
  • The Relationship Between Arbitrum and the Federal Reserve

    7:00-12:00 Keywords: Arbitrum, Federal Reserve, Base Test Network, Tether Summary of important developments at noon on March 17th Analysis based on this information:There has been significant buzz recently surrounding Arbitrum, a base test network that offers fast and secure transactions. Along with this, there have been questions about its relationship with the Federal Reserve and how it fits into the larger financial landscape. Arbitrum aims to provide solutions to scalability issues faced by existing blockchains. As it runs on a base test network, it allows developers to test their smart contracts before deploying them on the mainnet. This improves the safety and efficiency of blockchain networks and offers a faster and more secure alternative to traditional finance systems. One area where Arbitrum has attracted attention is in its relationship with Tether, a stablecoin that issues tokens that are pegged to the US dollar. Tether has been known to face regulatory challenges in the past, and its association with Arbitrum could…

    03/17/2023
    105
  • Federal Reserve Balance Sheet Surges in March

    According to reports, the Federal Reserve’s balance sheet jumped from $8.39 trillion on March 8 to $8.69 trillion on March 15, the highest level since last November. US $300 billion increase in Fed balance sheet Analysis based on this information:The Federal Reserve’s balance sheet has reached its highest level since November 2020. According to recent reports, the balance sheet surged from $8.39 trillion on March 8 to $8.69 trillion on March 15. This is a significant increase of $300 billion in just one week. One of the primary factors contributing to this surge is the Federal Reserve’s ongoing asset purchase program. As part of its efforts to stimulate the economy, the central bank has been purchasing large quantities of assets such as Treasury bonds and mortgage-backed securities. The increase in the balance sheet reflects the amount of assets the Federal Reserve has bought over the past year. The asset purchase program has been a key component of the Federal Reserve’s…

    03/17/2023
    107
  • High Inflation Data Could Result in Further Interest Rate Hikes Next Week, says Mitsubishi UFJ Economist

    as report goes, “The inflation data recorded this week, although in line with expectations, are still high,” said an economist at Mitsubishi UFJ. “We expect the Federal Reserve’s tightening cycle to come to an end, with a maximum tightening of 50 basis points in the future. We may see the FOMC suspend interest rate hikes after a further 25 basis points hike,” the bank’s economists also said: “Although the inflation data of the United States this week cannot guarantee that the tightening speed will accelerate to 50 basis points, if the financial market situation in the United States does not deteriorate again due to another incident in regional banks in the United States or elsewhere, then the inflation level is still high enough to justify further interest rate hikes next week.” Mitsubishi UFJ: Inflation data remains high. The Federal Reserve will still raise interest rates by 25 basis points Analysis based on this information:According to an economist at Mitsubishi UFJ,…

    03/17/2023
    121
  • JPMorgan Chase Predicts $2 Trillion Injection from Federal Reserve’s Emergency Loan Plan

    According to reports, JPMorgan Chase said that the Federal Reserve’s emergency loan plan may inject $2 trillion into the US banking system. (Watcher.Guru) JPMorgan Chase: The Federal Reserve’s emergency loan plan could inject $2 trillion into the US banking system Analysis based on this information:JPMorgan Chase, one of the country’s largest banks, has predicted that the Federal Reserve’s emergency loan plan could inject as much as $2 trillion into the US banking system. This report comes as the US economy continues to reel from the effects of the global pandemic, which has caused record levels of unemployment, business closures, and a historic drop in gross domestic product (GDP). The Federal Reserve announced its emergency loan plan in March of this year, designed to offer assistance to businesses and individuals impacted by the pandemic. This plan consists of several programs, including the Main Street Lending Program, designed to support small and mid-sized businesses, and the Municipal Liquidity Facility, designed to provide…

    03/16/2023
    93
  • Cryptocurrency is not the culprit for banks’ bankruptcy; it’s the Federal Reserve

    According to reports, Cathie Wood, founder of ARK Invest, stated on Twitter that cryptocurrency had not led to the bankruptcy of Silicon Valley banks and Signature, and that the “culprit” was the Federal Reserve. Due to the shortage of venture capital funds and the high yield of money market funds, deposits have left the US banking system. Cathie Wood believes that regulators use cryptocurrency as a scapegoat for their regulatory failures in traditional banking. Cathie Wood: The Federal Reserve is the “culprit” in the bankruptcy of Silicon Valley banks and Signature Analysis based on this information:Cathie Wood, the founder of ARK Invest, is renowned for her work as an investor in disruptive technologies and cutting-edge breakthroughs in the finance sector. In a recent post on Twitter, she stated that while cryptocurrency has been blamed for the bankruptcy of Silicon Valley banks and Signature, the Federal Reserve is the real culprit. Apparently, the shortage of venture capital funds and the high…

    03/16/2023
    122
  • Federal Reserve to Launch FedNowService for Real-Time Payments

    According to reports, the Federal Reserve will launch a real-time payment system, FedNowService, in July, aimed at solving the problem of delays in clearing existing inter agency financial transactions. The system will begin authenticating the first batch of participants in early April. (CoinDesk) The Federal Reserve will launch a real-time payment system to solve the problem of delayed clearing of financial transactions between institutions Analysis based on this information:The Federal Reserve of the United States is set to launch its real-time payment system, called FedNowService, in July. This new system aims to address and solve the recurring problem of delays in clearing existing inter-agency financial transactions. According to reports, the authentication process for the first set of participants will start in early April. The new payment system will enable faster and more secure interbank payments, compared to the currently available payment and settlement infrastructure in the country. This is a much-needed improvement, as traditional systems often cause delays, affecting both…

    03/16/2023
    102
  • Federal Reserve Likely to Raise Interest Rates in March

    According to CME’s “Federal Reserve observation”, the probability of the Federal Reserve keeping interest rates unchanged in March is 20.3%, the probability of raising interest rates by 25 basis points to the range of 4.75% – 5.00% is 79.7%, and the probability of raising interest rates by 50 basis points to the range of 5.00% – 5.25% continues to be 0%; The probability of a cumulative interest rate increase of 50 basis points in May will fall to 0%. The probability that the Federal Reserve will keep the interest rate unchanged in March fell to 20.3% Analysis based on this information:The message reveals the probability of the Federal Reserve adjusting interest rates during its next meeting in March. According to the observation by CME, the probability of keeping interest rates unchanged is very low at 20.3%. On the other hand, the likelihood of raising interest rates by 25 basis points to the range of 4.75% – 5.00% is high at…

    03/15/2023
    96
  • Michael Barr appointed head of supervising and regulating banking case in Silicon Valley

    It is reported that Michael Barr, the former adviser of Ripple and the current vice chairman of the Federal Reserve’s supervision, has been appointed by the board of supervisors as the head of supervision and regulatory review of the banking case in Silicon Valley. Barr will be responsible for conducting a thorough and comprehensive review of the supervision and supervision methods of failed banks and preparing follow-up work before May. The Federal Reserve appointed the former Ripple consultant as the supervisor of the banking case in Silicon Valley Analysis based on this information:Michael Barr, the former adviser of Ripple, is now the vice chairman of the Federal Reserve’s supervision, and the board of supervisors has appointed him as the head of supervision and regulatory review of the banking case in Silicon Valley. This is a significant move as Barr will be responsible for conducting a comprehensive review of the failed bank’s supervision and monitoring methods, and preparing follow-up work before…

    03/15/2023
    112