Investment Learning

August 19, 2024

Fed Expected to Cut Rates in September Amid Market Anticipation

According to Odaily, market expectations for a Federal Reserve rate cut next month are growing stronger, with the Fed likely to meet these expectations. Wall Street veteran Peter Schiff has indicated that a rate cut in September is anticipated, primarily because the market is now counting on it. This expectation is cited as the reason for the rebound in U.S. stocks after a sell-off on Monday. Given that the possibility of a September rate cut has already been factored in by the market, Federal Reserve Chairman Jerome Powell has little reason not to deliver, as he consistently aims to meet market expectations and avoid surprises.

August 19, 2024

Analyst Predicts Limited Decline for US Dollar Amid Fed Rate Expectations

According to Odaily, Swiss bank analyst Ipek Ozkardeskaya has stated that the current decline of the US dollar is likely to be limited. This is because the Federal Reserve is not expected to cut interest rates as significantly as the market anticipates. Currently, the US dollar index has fallen to a seven-and-a-half-month low. Ozkardeskaya noted that market expectations for the Federal Reserve's September meeting and potential rate cuts for the remainder of the year are still too high. As a result, there is a possibility for the US dollar to rebound. She also mentioned that the potential for the euro and the British pound to rise against the US dollar should be limited.

August 19, 2024

U.S. Treasury Plans Regulatory Changes for Cryptocurrency Transactions

According to PANews, the U.S. Department of the Treasury (DOT) released its semi-annual regulatory agenda on August 16, outlining upcoming federal efforts to create a fair regulatory environment for both cryptocurrencies and traditional fiat currencies. The Federal Reserve Board (FRS) and the Financial Crimes Enforcement Network (FinCEN) are planning to amend the definition of 'currency' under the Bank Secrecy Act (BSA) to enhance reporting requirements for financial institutions handling domestic and cross-border cryptocurrency transactions.The agenda states that these agencies aim to ensure that the revised proposal will apply to transactions involving convertible virtual currencies, which are mediums of exchange like cryptocurrencies that hold equivalent value to money or can substitute for money but lack legal tender status. Additionally, the proposal will extend reporting requirements to digital assets with legal tender status, including central bank digital currencies (CBDCs). The final notice for the proposed rulemaking is currently scheduled for release in September 2025, pending approval.

August 18, 2024

ASIC Reports Over 600 Crypto Scams Shut Down in Broader Crackdown

According to Odaily, the Australian Securities and Investments Commission (ASIC) revealed last Sunday that it coordinated the removal of over 600 cryptocurrency scams last year as part of a broader effort to combat online investment fraud. ASIC stated that it has helped dismantle 5,530 fake investment platform scams, 1,065 phishing scam hyperlinks, and 615 crypto investment scams. These scams, which were often spread through fake news articles and deepfake videos of local public figures, resulted in an estimated $1.3 billion in losses last year.The regulatory body emphasized the importance of consumer vigilance regarding social media hyperlinks promoting online trading and cryptocurrency investments. ASIC noted that approximately 20 websites are shut down daily, as scammers continue to adapt and find new ways to lure victims. While there was a surge in crypto-related scams around the Bitcoin halving event in April, ASIC's data indicates that the number of such scams is decreasing month by month.

August 18, 2024

Wall Street Awaits Fed Chair Powell’s Speech at Jackson Hole

According to BlockBeats, market data on August 19 indicates that Wall Street is betting on Federal Reserve Chair Jerome Powell confirming an imminent rate cut at the Jackson Hole annual meeting. However, as the focus shifts from 'whether there will be a rate cut' to 'how much the rate cut will be,' stock traders might face disappointment.Steward Partners Global Advisory's Managing Director Eric Beiley stated, 'If traders hear about an imminent rate cut, the stock market will react positively. If they don't hear the desired information, it could trigger a massive sell-off.' The market fully expects the Federal Reserve to begin rate cuts at the September meeting. However, Powell's speech on Friday could easily keep the timing of the rate cuts under wraps. Given his cautious nature, he might reveal the extent of rate cuts in a vague manner after the Fed completes its easing measures. 'The market is confident that rate cuts are imminent,' Beiley added. If Powell does not emphasize this as the future path, it will be a significant surprise.

August 18, 2024

Harris Proposes Tax Cuts and Affordable Housing in Economic Plan

According to Odaily, U.S. Vice President Kamala Harris recently outlined proposals aimed at reducing taxes for most Americans, banning grocery price gouging, and constructing more affordable housing. These measures are part of her 'Opportunity Economy' plan, which she intends to implement if elected to the White House. In her first major economic speech as the Democratic presidential nominee, Harris pledged to introduce a new child tax credit of up to $6,000 for families with young children, reduce taxes for families with children, and lower prescription drug costs. Harris also called for the construction of 3 million new homes over four years and proposed tax incentives for builders who construct homes for first-time buyers. Speaking to supporters at a rally in North Carolina, Harris stated that while the U.S. economy is strong, prices remain too high. She emphasized that, if elected president, her primary focus would be on the middle class. 'I firmly believe that when the middle class is strong, America is strong,' she said.

August 18, 2024

Better Markets CEO: SEC Likely To Win Ripple Lawsuit

According to PANews, Dennis Kelleher, President and CEO of the nonprofit organization Better Markets, which aims to create a safer financial system for Americans, has stated that the U.S. Securities and Exchange Commission (SEC) has a 90% chance of winning its lawsuit against Ripple over XRP. Kelleher criticized the court's ruling, arguing that the judge in the Ripple case misapplied the law.Previously, Ripple's legal chief had anticipated that the SEC would appeal, although the probability of overturning the lower court's decision was estimated to be less than 10%.