Eagle Crest Asset Management

July 12, 2024

US Federal Reserve Chairman Considers Rate Cuts Following Excellent Inflation Report

According to BlockBeats, on July 12, the Chairman of the US Federal Reserve in Chicago, Charles Evans, expressed that the inflation report for June was outstanding. He suggested that a rate cut or a series of rate cuts could be considered based on the data.Evans reassured that there is no need to panic about the unemployment situation as the job market is stable. He emphasized the importance of flexibility in policy decisions, stating that it is necessary to decide when to cut rates, rather than trying to predict the interest rate path for the next seven months.This statement indicates a potential shift in the Federal Reserve's approach to monetary policy, with a focus on responding to current economic conditions rather than attempting to forecast future trends. This could have significant implications for the US economy and financial markets.

July 11, 2024

SEC Drops Investigation Into PAXOS, Declares BUSD Not a Security

According to Odaily, the United States Securities and Exchange Commission (SEC) has decided to abandon its investigation into PAXOS. The regulatory body has also determined that BUSD does not fall under the category of securities. This decision marks a significant development in the ongoing discussions surrounding the classification of digital assets. The SEC's decision to halt its investigation into PAXOS and its ruling on BUSD could potentially influence future regulatory decisions regarding other digital assets. However, it is important to note that the SEC's decisions are subject to change and may not necessarily set a precedent for future cases. The regulatory landscape for digital assets remains complex and evolving, with each case being evaluated on its own merits.

July 11, 2024

US Inflation Cools Down in June, Boosting Confidence for Potential Rate Cut

According to BlockBeats, the general inflation in the United States cooled down in June, further boosting the confidence of Federal Reserve officials that a rate cut could be imminent. Data from the US Bureau of Labor Statistics showed that the core Consumer Price Index (CPI), excluding food and energy costs, rose by 0.1% compared to May, marking the smallest increase since August 2021.Data released on Thursday showed that the index rose by 3.3% year-on-year, the lowest increase in over three years. Economists believe that the core index reflects potential inflation more accurately than the overall CPI. Due to the drag of falling gasoline prices, the overall CPI fell by 0.1% compared to the previous month and fell by 3% compared to the same period last year, marking the first decline since the outbreak of the COVID-19 pandemic.

July 11, 2024

Traders Anticipate A Possible Third Rate Cut By The Federal Reserve Following CPI Data Release

According to Odaily, following the release of the Consumer Price Index (CPI) data, traders are predicting a 25% chance of the Federal Reserve implementing a third 25 basis point rate cut within the year. This speculation is based on the recent economic indicators and the central bank's monetary policy. The Federal Reserve has already implemented two rate cuts this year in an attempt to stimulate the economy. The potential third cut would further decrease the cost of borrowing, potentially stimulating further economic growth. However, it's important to note that these are predictions and the actual decision will depend on various factors including the state of the economy and inflation rates.

July 11, 2024

US Initial Unemployment Claims Drop to 222,000

According to BlockBeats, the number of initial unemployment claims in the United States for the week ending July 6th was 222,000. This figure is lower than the anticipated 236,000 and the previous value of 238,000. The decrease in initial unemployment claims suggests an improvement in the US job market. However, the exact impact of this decrease on the overall economy is yet to be determined. Further analysis and monitoring of the job market trends are required to understand the full implications of these numbers.

July 11, 2024

Bankrupt Terraform Labs Seeks To Sell Four Subsidiaries To Settle With SEC

According to PANews, Terraform Labs, currently in bankruptcy, is looking to sell its four subsidiaries in order to fulfill a $4.5 billion settlement agreement with the U.S. Securities and Exchange Commission (SEC) and gradually cease operations. The four companies in question are Pulsar Finance, a portfolio tracking platform, Station, a cryptocurrency wallet platform, Enterprise, a no-code decentralized autonomous organization (DAO) management platform, and Warp, a smart contract automation protocol.

July 11, 2024

US Federal Reserve Chairman Discusses Impact of SAB 121 on Digital Asset Custody

According to Odaily, Jerome Powell, the Chairman of the US Federal Reserve, testified before the US House Financial Services Committee on Wednesday. During the session, Congressman Josh Gottheimer questioned Powell about the US SEC's Staff Accounting Bulletin (SAB) 121. This directive requires banks to include digital assets held in custody in their balance sheets, significantly increasing the cost of providing digital asset custody services.Gottheimer referred to Powell's previous statement that custodial assets do not belong on balance sheets and have always been treated as such. Powell generally confirmed this stance but refrained from commenting on the SEC's policy, stating that it falls within the SEC's jurisdiction. Critics argue that SAB 121 weakens banks' ability to provide secure digital asset custody, pushing these services towards entities with less regulation and increasing consumer risk.Lawmakers have proposed overturning SAB 121 due to its negative impact. Despite the US Congress passing the first standalone cryptocurrency legislation to overturn SAB 121, President Biden vetoed the bill, emphasizing the need to establish a regulatory framework for digital assets.

July 11, 2024

CME Predicts: Federal Reserve Likely to Maintain Interest Rates in August

According to Odaily, the CME's 'Federal Reserve Watch' has predicted that the Federal Reserve is likely to maintain its current interest rates in August, with a probability of 94.3%. The chance of a 25 basis point cut is estimated at 5.7%. Looking ahead to September, the likelihood of the rates remaining unchanged drops to 27.4%. The probability of a cumulative 25 basis point cut increases to 68.6%, while the chance of a cumulative 50 basis point cut is predicted at 4.0%. These predictions provide an insight into the potential future actions of the Federal Reserve, which can have significant impacts on the economy.

July 10, 2024

US Treasury Secretary Denies Guiding SEC and CFTC on Crypto Regulation

According to BlockBeats, US Treasury Secretary Janet Yellen has denied providing guidance or coordination to the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding cryptocurrency regulation. Yellen made this statement while testifying before the US House Financial Services Committee on July 10.The Treasury Secretary's comments come amid ongoing discussions about the role of various regulatory bodies in overseeing the rapidly evolving digital currency sector. Yellen's statement indicates that she has not been directing or coordinating the actions of the SEC and CFTC, two key regulatory bodies in the US financial system.This news provides insight into the current state of cryptocurrency regulation in the US, highlighting the independence of the SEC and CFTC in their approach to this new financial technology. It also underscores the complexity of the regulatory landscape for cryptocurrencies, with multiple agencies involved and no clear guidance from the Treasury Department.

July 9, 2024

Evercore ISI Analyst Predicts Possible Rate Cut in September

According to BlockBeats, Evercore ISI analyst Krishna Guha has given his assessment of Jerome Powell's recent comments on the 'constantly changing risk balance'. Guha interprets Powell's remarks as dovish, suggesting that he is laying the groundwork for a potential rate cut in September. This prediction is contingent on the forthcoming data, particularly the inflation report due on Thursday, maintaining and supporting the Federal Reserve's assessment of the risk balance.