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Federal Reserve Ends Enforcement Action Against Farmington Bank Linked to Sam Bankman-Fried
- The Federal Reserve has concluded its enforcement action against Farmington Bank, previously linked to Sam Bankman-Fried.
- Farmington Bank wound down its operations, leading to the termination of the enforcement action, which had been in effect since July 2023.
- The enforcement action was initiated when the Fed accused Farmington of improperly changing its business model without informing the central bank.
- FBH Corporation, the bank's holding company, was also named in the enforcement action, which has now been terminated.
- Farmington had committed to designing IT infrastructure and facilitating the issuance of stablecoins in exchange for a portion of mint and burn fees on certain stablecoins.
- The bank operated briefly under the name Moonstone Bank and had ties to Alameda and Sam Bankman-Fried, though both were absent from the enforcement action.
- Alameda had invested $11.5 million into Farmington Bank.
- Last year, Farmington Bank announced a strategy shift, changing its name back and discontinuing its pursuit of an innovation-driven business model, reflecting the impact of recent events in the crypto assets industry and evolving regulatory dynamics.
#Write2Earn #FederalReserve #FedPolicy
- The Federal Reserve has concluded its enforcement action against Farmington Bank, previously linked to Sam Bankman-Fried.
- Farmington Bank wound down its operations, leading to the termination of the enforcement action, which had been in effect since July 2023.
- The enforcement action was initiated when the Fed accused Farmington of improperly changing its business model without informing the central bank.
- FBH Corporation, the bank's holding company, was also named in the enforcement action, which has now been terminated.
- Farmington had committed to designing IT infrastructure and facilitating the issuance of stablecoins in exchange for a portion of mint and burn fees on certain stablecoins.
- The bank operated briefly under the name Moonstone Bank and had ties to Alameda and Sam Bankman-Fried, though both were absent from the enforcement action.
- Alameda had invested $11.5 million into Farmington Bank.
- Last year, Farmington Bank announced a strategy shift, changing its name back and discontinuing its pursuit of an innovation-driven business model, reflecting the impact of recent events in the crypto assets industry and evolving regulatory dynamics.
#Write2Earn #FederalReserve #FedPolicy
Bitcoin's Potential Surge Before Fed Rate Decision
#MarketSentimentToday #Market_Update #MarketForecast
#BitcoinHalvingTrends #FedPolicy
Bitcoin recently tested the $53K support level and is now in a correction phase.
Analysts expect BTC to trade between $53K and $61K before the Fed's rate decision on September 18.
A potential rate cut may cause short-term market drops but is seen as bullish in the long term. It's crucial for Bitcoin to hold above the $50K mark to ensure recovery after the market dip.
If it fails, prices could dip to $47K or even $42K, though a quick rebound is anticipated.
#MarketSentimentToday #Market_Update #MarketForecast
#BitcoinHalvingTrends #FedPolicy
Bitcoin recently tested the $53K support level and is now in a correction phase.
Analysts expect BTC to trade between $53K and $61K before the Fed's rate decision on September 18.
A potential rate cut may cause short-term market drops but is seen as bullish in the long term. It's crucial for Bitcoin to hold above the $50K mark to ensure recovery after the market dip.
If it fails, prices could dip to $47K or even $42K, though a quick rebound is anticipated.
Fed Signals 0.75 Percentage Points Rate Cut in 2024
The Federal Reserve System (#Fed ) in its recent meeting, held on Wednesday and being the last of this year, left interest rates unchanged at a level between 5.25 and 5.5 percent. Central bank officials indicated that a rate cut is expected next year, forecasting rates to be around 4.6 percent.
Fed's "Dot Plot" and Future Trends
In its policy statement, the Fed also presented updated economic forecasts as part of its Summary of Economic Projections (SEP), including the so-called "dot plot." This plot illustrates the expectations of policymakers regarding the future direction of interest rates.
Interest Rate Predictions
According to the Fed's data, the federal funds rate in 2024 is expected to peak at a maximum of 4.6 percent, lower than the previous estimate of 5.1 percent from last September. This implies that the Fed plans to cut rates by 0.75 percentage points next year. Over the past year, the Fed has made rate adjustments in 25-basis-point increments, indicating a plan for three rate cuts in 2024.
Market Reaction to SEP
Immediately after the SEP was published, the markets began to align with the nearly 60% probability that the Fed would start reducing rates as early as its March meeting.
Forecasts for 2024
Of the 17 Fed officials, the majority predicts a rate cut next year, with five of them expecting a decline of more than 0.75 percentage points. Only two officials do not expect any change, but none of them predicts an increase in rates for 2024.
Inflation Expectations
According to the SEP, inflation next year is expected to peak at 2.4 percent, followed by slightly lower figures of 2.2 percent in 2025 and 2.0 percent in 2026.
Unemployment in the Coming Years
Fed officials anticipate that the unemployment rate in 2024 will rise to 4.1 percent, in line with their previous estimates. This rate is expected to remain stable until 2026.
Economic Growth
The Fed predicts a slowdown in economic growth, with the economy expected to grow by 1.4 percent next year, then slightly accelerating to 1.8 percent in 2025 and 1.9 percent in 2026.
Conclusion After the Fed Meeting
Stock markets experienced a significant increase following the Fed's Wednesday meeting. On the other hand, yields on ten-year government bonds (^TNX) fell by about 11 basis points, trading around 4.1 percent.
💥Do you want to receive tips and the most interesting information from the world every day? Don't hesitate to subscribe to our channel and like.💰
#Bitcoin #crypto2023 #FedPolicy
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Fed's "Dot Plot" and Future Trends
In its policy statement, the Fed also presented updated economic forecasts as part of its Summary of Economic Projections (SEP), including the so-called "dot plot." This plot illustrates the expectations of policymakers regarding the future direction of interest rates.
Interest Rate Predictions
According to the Fed's data, the federal funds rate in 2024 is expected to peak at a maximum of 4.6 percent, lower than the previous estimate of 5.1 percent from last September. This implies that the Fed plans to cut rates by 0.75 percentage points next year. Over the past year, the Fed has made rate adjustments in 25-basis-point increments, indicating a plan for three rate cuts in 2024.
Market Reaction to SEP
Immediately after the SEP was published, the markets began to align with the nearly 60% probability that the Fed would start reducing rates as early as its March meeting.
Forecasts for 2024
Of the 17 Fed officials, the majority predicts a rate cut next year, with five of them expecting a decline of more than 0.75 percentage points. Only two officials do not expect any change, but none of them predicts an increase in rates for 2024.
Inflation Expectations
According to the SEP, inflation next year is expected to peak at 2.4 percent, followed by slightly lower figures of 2.2 percent in 2025 and 2.0 percent in 2026.
Unemployment in the Coming Years
Fed officials anticipate that the unemployment rate in 2024 will rise to 4.1 percent, in line with their previous estimates. This rate is expected to remain stable until 2026.
Economic Growth
The Fed predicts a slowdown in economic growth, with the economy expected to grow by 1.4 percent next year, then slightly accelerating to 1.8 percent in 2025 and 1.9 percent in 2026.
Conclusion After the Fed Meeting
Stock markets experienced a significant increase following the Fed's Wednesday meeting. On the other hand, yields on ten-year government bonds (^TNX) fell by about 11 basis points, trading around 4.1 percent.
💥Do you want to receive tips and the most interesting information from the world every day? Don't hesitate to subscribe to our channel and like.💰
#Bitcoin #crypto2023 #FedPolicy
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Echoes of 2008: Is the Fed's Tight Monetary Policy a Mistake?
The Federal Reserve is walking a fine line with its current stance on interest rates. Over the past two years, the Fed has kept rates above the neutral level, echoing mistakes that led to past economic downturns.
🔸 In 2008, delayed rate cuts fueled the recession.
🔸 In 1929, similar policies contributed to the Great Depression.
Today, even as inflation stabilizes, the Fed's caution could have serious repercussions. With the labor market flashing warning signs — layoffs are up, hiring is down, and wages are stagnant — the question is: Will the Fed act in time?
The stock market may seem strong, but history teaches us that it doesn’t always predict the future. We could be on the verge of another major economic correction.
Stay informed and prepared.
#InterestRates #EconomicCrisis #FedPolicy #RecessionRisk
🔸 In 2008, delayed rate cuts fueled the recession.
🔸 In 1929, similar policies contributed to the Great Depression.
Today, even as inflation stabilizes, the Fed's caution could have serious repercussions. With the labor market flashing warning signs — layoffs are up, hiring is down, and wages are stagnant — the question is: Will the Fed act in time?
The stock market may seem strong, but history teaches us that it doesn’t always predict the future. We could be on the verge of another major economic correction.
Stay informed and prepared.
#InterestRates #EconomicCrisis #FedPolicy #RecessionRisk
🚨 U.S. Inflation Data Next Week: Could It Spark Rate Cut Talks? 🚨
Click here and VOTE on My Profile 👇
Next week, all eyes are on the upcoming U.S. inflation report. Why? This data might just push the Federal Reserve closer to considering an interest rate cut. Economists are already speculating on the outcome.
Here’s the scoop: The Fed’s favorite inflation gauge, the Personal Consumption Expenditures (PCE) price index (excluding food and energy), is expected to rise by only 0.2% in July. This would mark the second consecutive month of minimal increases.
What’s more, the three-month annualized rate for core inflation is likely to dip to 2.1%—just shy of the Fed’s 2% target. This near miss could fuel expectations for a rate cut.
But there's more to the story than just inflation. Consumer spending is also in the spotlight, predicted to climb by 0.5% in July. That might not seem huge, but it’s the strongest gain in four months, showing that consumers are still confident in the economy.
Why does this matter? Steady consumer spending is crucial for economic growth, especially as the Fed tries to bring inflation down to its 2% target without triggering a recession.
Fed Chair Jerome Powell recently hinted at a potential policy shift, expressing confidence that inflation is moving in the right direction. But with inflation cooling, the focus is now shifting to the labor market. The Fed’s dual mandate of managing inflation and employment is back in play, with the job market taking center stage.
Powell also revealed that the Fed is preparing for its first formal review since the pandemic, acknowledging the lessons learned and the need for humility. The goal? To keep the U.S. economy steady while learning from the past.
Stay tuned—next week’s data could set the stage for the Fed’s next big move. 💡
#Inflation #FederalReserve #Economy #InterestRates #FedPolicy
Click here and VOTE on My Profile 👇
Next week, all eyes are on the upcoming U.S. inflation report. Why? This data might just push the Federal Reserve closer to considering an interest rate cut. Economists are already speculating on the outcome.
Here’s the scoop: The Fed’s favorite inflation gauge, the Personal Consumption Expenditures (PCE) price index (excluding food and energy), is expected to rise by only 0.2% in July. This would mark the second consecutive month of minimal increases.
What’s more, the three-month annualized rate for core inflation is likely to dip to 2.1%—just shy of the Fed’s 2% target. This near miss could fuel expectations for a rate cut.
But there's more to the story than just inflation. Consumer spending is also in the spotlight, predicted to climb by 0.5% in July. That might not seem huge, but it’s the strongest gain in four months, showing that consumers are still confident in the economy.
Why does this matter? Steady consumer spending is crucial for economic growth, especially as the Fed tries to bring inflation down to its 2% target without triggering a recession.
Fed Chair Jerome Powell recently hinted at a potential policy shift, expressing confidence that inflation is moving in the right direction. But with inflation cooling, the focus is now shifting to the labor market. The Fed’s dual mandate of managing inflation and employment is back in play, with the job market taking center stage.
Powell also revealed that the Fed is preparing for its first formal review since the pandemic, acknowledging the lessons learned and the need for humility. The goal? To keep the U.S. economy steady while learning from the past.
Stay tuned—next week’s data could set the stage for the Fed’s next big move. 💡
#Inflation #FederalReserve #Economy #InterestRates #FedPolicy
Dogecoin on the Cusp of a Breakout
Technical Analysis:
Dogecoin testing key resistance level
Falling wedge pattern suggests potential price rebound
Crypto Yapper predicts 2x increase to $0.20
Bullish Outlook:
- Annual highs of $0.22 (120% increase from $0.1025)
- Break above 50DMA indicates near-term momentum shift
- Bull domination potential
Market Factors:
- Fed policy statement on Wednesday
- Potential rate decrease (25-50bps)
- Fed Chair Jerome Powell's stance on US recession
Key Takeaways:
- Dogecoin's price may rise with favorable market conditions
- Rate decrease and reassuring comments from Powell could boost risk appetite
- Breakout depends on overcoming resistance and market sentiment
Stay tuned for updates.
#Dogecoin #Breakout #TechnicalAnalysis #Cryptocurrency #FedPolicy #MarketSentiment
Dogecoin testing key resistance level
Falling wedge pattern suggests potential price rebound
Crypto Yapper predicts 2x increase to $0.20
Bullish Outlook:
- Annual highs of $0.22 (120% increase from $0.1025)
- Break above 50DMA indicates near-term momentum shift
- Bull domination potential
Market Factors:
- Fed policy statement on Wednesday
- Potential rate decrease (25-50bps)
- Fed Chair Jerome Powell's stance on US recession
Key Takeaways:
- Dogecoin's price may rise with favorable market conditions
- Rate decrease and reassuring comments from Powell could boost risk appetite
- Breakout depends on overcoming resistance and market sentiment
Stay tuned for updates.
#Dogecoin #Breakout #TechnicalAnalysis #Cryptocurrency #FedPolicy #MarketSentiment
🚨 BREAKING: August PCE Inflation Update! 📉
🔹 Headline PCE fell to 2.2% (vs. 2.3% expected) 📊
🔹 Core PCE (excludes food & energy) rose to 2.7%, matching expectations
While headline inflation is cooling, core inflation shows underlying price pressures persist. 💡
With the next Fed meeting in November, markets are eyeing a 50 bps rate cut—though we think it’s not needed yet! 🔧
Will the Fed hold steady or feel the pressure to cut? Stay tuned! 📅
#Inflation #CryptoMarkets #FedPolicy
🔹 Headline PCE fell to 2.2% (vs. 2.3% expected) 📊
🔹 Core PCE (excludes food & energy) rose to 2.7%, matching expectations
While headline inflation is cooling, core inflation shows underlying price pressures persist. 💡
With the next Fed meeting in November, markets are eyeing a 50 bps rate cut—though we think it’s not needed yet! 🔧
Will the Fed hold steady or feel the pressure to cut? Stay tuned! 📅
#Inflation #CryptoMarkets #FedPolicy
Robert Kiyosaki, author of Rich Dad Poor Dad, has dropped a bombshell forecast! 🚀📈 He predicts Bitcoin could skyrocket to $300,000 by the end of the year thanks to a major U.S. Federal Reserve policy shift. Kiyosaki is bullish on both Bitcoin and gold, leaving the debate behind and focusing on huge gains! Ready for the ride? Watch now to get the full scoop! #Bitcoin #BTC #RobertKiyosaki #BitcoinPrediction #CryptoNews #Gold #FedPolicy #BitcoinPrice #RichDadPoorDad
$BTC
$BTC
📊 Market Turmoil: Fed's Rate Cuts Backfire, Inflation Surges 📊
📉 The Market is Broken 📉
The Fed's recent actions seem to have backfired. Despite cutting rates by 50 bps in September, we’re seeing unexpected market reactions. Here’s a quick breakdown:
🔶 Interest Rates Surge:
The 10-year note yield has jumped by 60 bps in a month, now above 4.20%, and the average 30-year mortgage is nearing 7.0%—the highest since July.
🔶 Mortgage Demand Collapse: Mortgage rates have soared from 6.1% to 6.8% in just four weeks, with demand hitting its lowest since the 1990s.
🔶 Rising Inflation: Core CPI inflation hit 3.3% in September, its first increase since March 2023, while unemployment dropped as the U.S. added 254,000 jobs—contradicting the Fed’s expectations.
🔶 Rate Cuts Priced-Out: Markets no longer expect more rate cuts this year, with a 33% chance that we see no cuts at all in 2024.
📅 November is Critical: The upcoming election, Fed meeting, and labor/inflation data will be pivotal. The Fed needs to tread carefully to avoid stagflation, a damaging scenario seen in the 1970s.
Gradual rate cuts are the answer—not aggressive 50 bps moves.
#MarketUpdate #FedPolicy #InterestRates #STAGFLATION #Inflation
The Fed's recent actions seem to have backfired. Despite cutting rates by 50 bps in September, we’re seeing unexpected market reactions. Here’s a quick breakdown:
🔶 Interest Rates Surge:
The 10-year note yield has jumped by 60 bps in a month, now above 4.20%, and the average 30-year mortgage is nearing 7.0%—the highest since July.
🔶 Mortgage Demand Collapse: Mortgage rates have soared from 6.1% to 6.8% in just four weeks, with demand hitting its lowest since the 1990s.
🔶 Rising Inflation: Core CPI inflation hit 3.3% in September, its first increase since March 2023, while unemployment dropped as the U.S. added 254,000 jobs—contradicting the Fed’s expectations.
🔶 Rate Cuts Priced-Out: Markets no longer expect more rate cuts this year, with a 33% chance that we see no cuts at all in 2024.
📅 November is Critical: The upcoming election, Fed meeting, and labor/inflation data will be pivotal. The Fed needs to tread carefully to avoid stagflation, a damaging scenario seen in the 1970s.
Gradual rate cuts are the answer—not aggressive 50 bps moves.
#MarketUpdate #FedPolicy #InterestRates #STAGFLATION #Inflation
Market Turmoil: Fed’s Rate Cuts Backfire, Inflation Soars 📊
📉 Market in Crisis 📉 The Federal Reserve’s recent rate cuts are not delivering the intended results. Despite a 50 bps cut in September, market behavior is defying expectations. Here’s a summary:
🔶 Interest Rates Spike:
The 10-year Treasury yield has surged 60 bps in a month, surpassing 4.20%, while the average 30-year mortgage rate is nearing 7.0%—a peak not seen since July.
🔶 Mortgage Demand Plummets:
Mortgage rates have risen from 6.1% to 6.8% in just four weeks, leading to the lowest demand since the 1990s.
🔶 Inflation on the Rise:
Core CPI inflation increased to 3.3% in September, its first uptick since March 2023. Meanwhile, unemployment dropped as the U.S. added 254,000 jobs, challenging the Fed’s expectations.
🔶 Rate Cuts Unlikely:
Markets no longer anticipate further rate cuts this year, with a 33% chance of no cuts at all in 2024.
📅 Crucial November Ahead:
The upcoming election, Fed meeting, and labor/inflation data will play a critical role. The Fed must proceed cautiously to avoid a stagflation scenario reminiscent of the 1970s.
Gradual, measured rate cuts may be the solution, not aggressive 50 bps moves.
#MarketUpdate #FedPolicy #InterestRates #Stagflation #Inflation
🔶 Interest Rates Spike:
The 10-year Treasury yield has surged 60 bps in a month, surpassing 4.20%, while the average 30-year mortgage rate is nearing 7.0%—a peak not seen since July.
🔶 Mortgage Demand Plummets:
Mortgage rates have risen from 6.1% to 6.8% in just four weeks, leading to the lowest demand since the 1990s.
🔶 Inflation on the Rise:
Core CPI inflation increased to 3.3% in September, its first uptick since March 2023. Meanwhile, unemployment dropped as the U.S. added 254,000 jobs, challenging the Fed’s expectations.
🔶 Rate Cuts Unlikely:
Markets no longer anticipate further rate cuts this year, with a 33% chance of no cuts at all in 2024.
📅 Crucial November Ahead:
The upcoming election, Fed meeting, and labor/inflation data will play a critical role. The Fed must proceed cautiously to avoid a stagflation scenario reminiscent of the 1970s.
Gradual, measured rate cuts may be the solution, not aggressive 50 bps moves.
#MarketUpdate #FedPolicy #InterestRates #Stagflation #Inflation
