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Fed Chair Warsh remains hawkish and focused on bringing price stability:
1. Fed keeps interest rates steady at 3.75-4%
2. Inflation remains elevated above 2% target for over 6 years.
3. Geopolitical uncertainty is the primary reason of rising inflation.
4. Economic activity is expanding and labour market remains strong.
5. In 2027, FOMC schedule will change with the same 8 Fed meetings annually but one meeting will only focus on monetary policy strategy without any rate decision.
6. In 2028, Fed will have two such monetary policy strategy meetings and six on rate decisions.
7. Warsh says its important to keep ‘time and space’ for such ‘strategic deliberations’ to focus on ‘long term horizon.’
8. On December rate hikes, Warsh says the coming period is ‘information rich’ and future hikes will depend on it.
9. Warsh says he is ‘unwilling and unable’ to call financial conditions tight.
10. Warsh believes higher interest does affect the AI spending, irrespective of their revenues.
11. Warsh clarified ‘politics’ or ‘midterm elections’ had no role in today’s decision about Fed rates.
12. Any decision on shrinking Fed balance sheet will only come early in Q1 2027, after recommendations from task force.
13. Overall, he doesn’t see current economic growth causing inflation but is closely watching numbers for future
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UPDATE: X will NOT offer Crypto and Bitcoin trading directly to its users.
X head of product Nikita Bier has clarified that the platform will not handle trade execution or act as a brokerage.
Instead, X is building Smart Cashtags financial data tools that let users view live prices, charts, and asset information directly from the timeline. Any Buy/Sell actions will redirect users to external brokers or exchange partners for execution.
Bitcoin ($BTC )just dropped $2,400 in an hour, while alts are in free fall as usual. Here’s why:
1. Everything is dumping
- Stocks are dumping today - Precious metals are dumping - Only DXY is up
This is a sign that investors are exiting assets, including crypto, and moving into dollar.
2. Weak economic data
- US home sales fell -8.4% last month, the worst in almost 4 years. - Initial jobless claims came higher than expected, which means a weak labor market. - All this indicates a weakening economy, which increases the odds of recession.
3. Government shutdown
- The odds of another government shutdown this week have risen to 96% - This is bad for the economy and markets as liquidity dries up during shutdown.
My thoughts - The US economy is now facing some turbulence. - This is affecting the stock market and the crypto market too. - I think this could continue for some time until Trump announces another trade deal or some liquidity injection to boost the markets