The Federal Reserve kept its benchmark interest rate unchanged for the seventh consecutive time and expects a 25 basis point rate cut in 2024 | Binance Morning Report (June 13)

● The Federal Reserve kept its benchmark interest rate unchanged for the seventh consecutive time and expects a 25 basis point rate cut in 2024

According to PANews, the Federal Reserve has kept its benchmark interest rate unchanged at 5.25%-5.50% for the seventh consecutive time, which is in line with market expectations. The Fed's dot plot shows that it expects a 25 basis point rate cut in 2024.

● The Fed's dot plot shows that there may only be one rate cut in 2024

According to Jinshi, the Federal Reserve acknowledged that it had made modest progress on its 2% inflation target, but still delayed the start of interest rate cuts. The hawkish dot plot shows that there will be only one interest rate cut in 2024.

● Bill Adams, Chief Economist of the Federal Reserve: The dot plot does not necessarily reflect the FOMC vote

According to Jinshi, Bill Adams, chief economist at Comerica Bank, said that the balance of opinion in the dot plot does not necessarily reflect the FOMC's vote from now until the end of the year. All regional Fed presidents have a dot in the dot plot, but only a few have voting rights. Most votes are cast by the governors, who tend to be more receptive to the idea of ​​rate cuts. This suggests that most FOMC members with voting rights may think that two rate cuts before the end of the year are most likely appropriate. At the same time, if economic data differs from their expectations, most people will not feel obliged to insist on rate cuts. FOMC members have repeatedly emphasized that they will rely on data to make decisions on a case-by-case basis.

● The annual rate of US core CPI in May was 3.4%, lower than expected

According to BlockBeats, on June 12, the U.S. unadjusted core CPI annual rate in May was 3.4%, lower than the expected level of 3.5%, the lowest level since April 2021.

● Analysis: The Fed has made significant progress in achieving its 2% inflation target

According to Jinshi, Art Hogan, chief market strategist at B. Riley Financial, said that the inflation trend so far this year has been more stubborn than expected. The two recent CPI reports show that things seem to be moving in the right direction. The market has digested the risk that CPI may be hotter than expected, so the stock market has received a positive reaction after the data was released. The report helps reassure the Federal Reserve that they have made significant progress in achieving their 2% target.

● Fed Chairman Powell: The U.S. economy has made significant progress and inflation has eased significantly but is still too high.

According to BlockBeats, on June 13, Federal Reserve Chairman Powell said that the U.S. economy has made significant progress and that current inflation has eased significantly, but it is still too high.

● Taiwan's Financial Supervisory Commission will regulate virtual asset trading business in four stages and is expected to submit a draft special law before June next year

According to Foresight News, Peng Jinlong, chairman of the Taiwan Financial Supervisory Commission, said that virtual assets and trading businesses (VASPs) will be gradually brought under supervision in four stages. The VASP industry association will be established tomorrow (June 13), and self-regulatory norms will be formulated and penalties will be added to strengthen self-discipline. It is expected that by the end of December this year, a draft of the special law on virtual asset management will be proposed, and the regulations will be announced and public hearings will be held. The draft special law will be submitted to the Yuan before June next year. The Taiwan Financial Supervisory Commission has been designated by the Executive Yuan as the competent authority for virtual assets with financial investment or payment nature, so it has taken the lead in bringing important parts under supervision. The future special law will focus on safety and consumer protection, while also paying attention to market development. According to China Times News, the virtual asset industry will be regulated in four stages, and the third stage has been reached.