The Fed's "megaphone": cooling inflation eases pressure for rate hikes, but hawkish voices have not yet faded
On August 12, "the Federal Reserve's megaphone" Nick Timiraos said that the July CPI data was broadly in line with expectations, easing pressure for the Fed to raise rates in September. The Fed believes current interest rates are sufficiently restrictive to steer inflation toward its 2% target, without the need for further hikes. "the Fed's megaphone" Nick Timiraos said: "The July inflation report was broadly consistent with market expectations, easing pressure for the Fed to raise rates next month. Wall Street is especially focused on today's released CPI data, because Fed officials have also signaled that they are paying closer attention to this figure. Over the past year, Fed officials have generally expected that inflation would cool back to the 2% target level without the need for further rate hikes, but now some officials believe it is necessary to maintain higher interest rates. Other officials say they could also join the hawkish minority camp if more data makes the current outlook harder to sustain. This forecast is based on the view that the current level of interest rates is already restrictive enough, and that inflation remaining elevated is due to external shocks rather than monetary policy being too loose. The earlier assessment was that tariffs would only raise costs once, and then the impact would gradually fade; as tensions in the Middle East ease, energy prices would also fall in line with crude oil. But the reality is that these shocks are continuing, and now they are compounded by a surge in demand driven by the AI construction boom, which is pushing up the prices of technology equipment and software."
Global’s Largest Sovereign Wealth Fund Nets a Record $184 Billion Profit, First Time Disclosing It Holds Shares in SpaceX
Focus on U.S. Stocks’ 2026 Second-Quarter Earnings
Key takeaways On Wednesday, Norway’s sovereign wealth fund with a scale of 2.3 trillion USD announced that its first-half profits exceeded 184 billion USD, setting a record high. The fund also disclosed externally that it holds 0.05% equity in SpaceX, corresponding to a valuation of about 1.2 billion USD. On January 29, 2025, at a Norwegian news press conference in Oslo, Norway, Nikolai Tangen, CEO of Norges Bank Investment Management (NBIM). The Norwegian sovereign fund, with a size of 1.8 trillion USD, achieved a return rate of 13% last year, with profits of 222 billion USD, mainly benefiting from a surge in U.S. tech stocks. This Norwegian sovereign wealth fund, with a size of 2.3 trillion USD, delivered its results on Wednesday: boosted by gains in Asian technology shares, the fund’s return reached 9.4%. First-half profits hit a new high, exceeding 184 billion USD.
Fidelity is preparing to add an ETH staking and quarterly cash distribution mechanism to its Ethereum ETF (FETH). FETH currently has net assets of approximately $898 million. According to the amended registration documents, under normal circumstances the fund may use up to 100% of its ETH for staking, but there is no minimum staking ratio set, and it will retain some ETH for redemptions, fees, and other liquidity needs. Fidelity plans to keep 85% of the total staking rewards, while the remaining 15% will be paid to the fund sponsor, the custodian, and the node operators. The node operators listed in the documents include Blockdaemon, Figment, and Galaxy. Staking net income will be used first to pay fund expenses, with the remainder used for quarterly cash distributions. Under applicable IRS rules, the fund must distribute net staking income at least once per quarter. Fidelity also said that if needed, the fund may sell some ETH to raise cash for distributions. This change is being implemented after the IRS issued safe-harbor guidance in November 2025, which allows eligible crypto trusts to stake without losing the grantor trust tax status.
The Fed's "megaphone": cooling inflation eases pressure for rate hikes, but hawkish voices have not yet faded
On August 12, "the Federal Reserve's megaphone" Nick Timiraos said that the July CPI data was broadly in line with expectations, easing pressure for the Fed to raise rates in September. The Fed believes current interest rates are sufficiently restrictive to steer inflation toward its 2% target, without the need for further hikes. "the Fed's megaphone" Nick Timiraos said: "The July inflation report was broadly consistent with market expectations, easing pressure for the Fed to raise rates next month. Wall Street is especially focused on today's released CPI data, because Fed officials have also signaled that they are paying closer attention to this figure. Over the past year, Fed officials have generally expected that inflation would cool back to the 2% target level without the need for further rate hikes, but now some officials believe it is necessary to maintain higher interest rates. Other officials say they could also join the hawkish minority camp if more data makes the current outlook harder to sustain. This forecast is based on the view that the current level of interest rates is already restrictive enough, and that inflation remaining elevated is due to external shocks rather than monetary policy being too loose. The earlier assessment was that tariffs would only raise costs once, and then the impact would gradually fade; as tensions in the Middle East ease, energy prices would also fall in line with crude oil. But the reality is that these shocks are continuing, and now they are compounded by a surge in demand driven by the AI construction boom, which is pushing up the prices of technology equipment and software."
Global’s Largest Sovereign Wealth Fund Nets a Record $184 Billion Profit, First Time Disclosing It Holds Shares in SpaceX
Focus on U.S. Stocks’ 2026 Second-Quarter Earnings
Key takeaways On Wednesday, Norway’s sovereign wealth fund with a scale of 2.3 trillion USD announced that its first-half profits exceeded 184 billion USD, setting a record high. The fund also disclosed externally that it holds 0.05% equity in SpaceX, corresponding to a valuation of about 1.2 billion USD. On January 29, 2025, at a Norwegian news press conference in Oslo, Norway, Nikolai Tangen, CEO of Norges Bank Investment Management (NBIM). The Norwegian sovereign fund, with a size of 1.8 trillion USD, achieved a return rate of 13% last year, with profits of 222 billion USD, mainly benefiting from a surge in U.S. tech stocks. This Norwegian sovereign wealth fund, with a size of 2.3 trillion USD, delivered its results on Wednesday: boosted by gains in Asian technology shares, the fund’s return reached 9.4%. First-half profits hit a new high, exceeding 184 billion USD.
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