Federal Reserve
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Federal Reserve: Global Central Banks Will Increase Liquidity Through Dollar Swap Agreements
According to reports, the Federal Reserve said that in order to improve the effectiveness of providing US dollar funds through the US dollar swap line, the central bank that currently provides US dollar operations has agreed to increase the frequency of 7-day maturity operations from weekly to daily. The increase in operating hours will begin on Monday and will continue at least until the end of April. Interpretation of this information: The Federal Reserve has announced its plan to increase the efficiency of providing US dollar funds through the US…
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US Senator Calls for Independent Investigation of the Federal Reserve: Both Efforts Failed
On March 20th, according to a report in the U.S. “Capitol Hill” on March 19th, U.S. Senator Elizabeth Warren of Massachusetts severely criticized Federal Reserve Chairman Powell’s regulatory failure in a television program, calling for an investigation of the Federal Reserve and the entire regulatory system. Warren stated in an interview that Powell should not lead the central banking system in the United States, as his work on both monetary policy and bank regulation has failed. Warren also said, ‘I don’t think he should raise interest rates. I have always…
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Summary of important developments at noon on March 20th
7:00-12:00 Keyword: ARB, Ordinals, Federal Reserve, Stacks Interpretation of this information: The message implies that there will be a significant event happening between 7:00 and 12:00, which may involve the ARB, Ordinals, and the Federal Reserve. It’s unclear what exactly this event entails, but it may have a substantial impact on the financial sector. ARB could refer to the Australian Securities Exchange’s foreign company market, which allows non-Australian firms to issue stocks to Australian investors. This market segment is commonly used by foreign companies to boost their visibility in Australia…
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BlackRock CEO: Backward digital asset innovation in developed markets such as the United States leads to higher payment costs
According to reports, Larry Fink, CEO of global asset management giant BlackRock, stated in his latest annual investor letter that very interesting developments are taking place in the field of digital assets, and many emerging markets, such as India, Brazil, and parts of Africa, are witnessing significant progress in digital payments, reducing costs, and promoting financial inclusion. In contrast, many developed markets, including the United States, lag behind in innovation, resulting in much higher payment costs. Larry Fink also predicted that the Federal Reserve would continue to focus on fighting…
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Musk: The Federal Reserve needs to immediately lower interest rates
On March 18th, Tesla CEO Elon Musk said that the Federal Reserve’s interest rate needs to be lowered immediately. Interpretation of this information: On March 18th, the CEO of Tesla, Elon Musk took to Twitter to express his thoughts on the current interest rates set by the Federal Reserve. In his message, Musk emphasised the need for an immediate lowering of the interest rates. His message was interpreted by many as a call to action, echoing concerns surrounding the current state of the U.S. economy. Musk’s message refers to the…
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US banking deposits fell by $54 billion in a week before the collapse of Silicon Valley banks
According to reports, in the week before the collapse of three banks triggered global financial turmoil, deposits in the US banking industry had continued to decline. According to data released by the Federal Reserve on Friday, bank deposits decreased by $54.4 billion to $17.6 trillion in the week ended March 8. Deposits have fallen by about $500 billion from the peak set in April last year, exacerbating the pressure on the financial system. After the collapse of Silicon Valley banks and two other banks, the Federal Reserve’s weekly report on…
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Founder of BitMEX: BTFP plans to print $4.4 trillion, and the Federal Reserve is about to reverse the tightening cycle
On March 17th, Arthur Hayes, the founder of BitMEX, wrote that the Federal Reserve’s Bank Term Financing Plan (BTFP) had undertaken quantitative easing of $4.4 trillion in another way, even exceeding the $4.189 trillion printed in response to the COVID crisis. Although the BTFP plan is mandated to last only one year, it will almost certainly be extended preventively. The Federal Reserve is expected to either start cutting interest rates at its upcoming March meeting or a severe recession in a few months will force it to turn. Since the…
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US $300 billion increase in Fed balance sheet
According to reports, the Federal Reserve’s balance sheet jumped from $8.39 trillion on March 8 to $8.69 trillion on March 15, the highest level since last November. Interpretation of this information: The Federal Reserve’s balance sheet is a cornerstone financial report that reflects the central bank’s financial health. It contains information about the bank’s assets, liabilities, and capital. This report is essential in evaluating the bank’s monetary policy, stability, and financial strength. According to recent reports, the Federal Reserve’s balance sheet has increased from $8.39 trillion on March 8 to…
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Federal Reserve’s mouthpiece: Bank turmoil may cause the Federal Reserve to suspend interest rate hikes
According to a recent article by Nick Timiraos, the “shadow official” and mouthpiece of the Federal Reserve, more investors are currently anticipating that the Federal Reserve’s interest rate hike cycle may have ended due to the broader financial turmoil caused by the collapse of two regional banks in the United States in the past week. Michael, chief US analyst at JPMorgan Chase, said that suspending interest rate hikes now would send a false signal about the seriousness of the Fed’s efforts to address inflation issues, which could also exacerbate concerns…
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JPMorgan Chase: The Federal Reserve’s Emergency Loan Program will provide $2 trillion in liquidity
On March 16th, JPMorgan Chase said that the Federal Reserve’s emergency loan plan may inject up to $2 trillion into the US banking system to alleviate the liquidity crunch. Strategists such as Nikolaos Panigrtzoglou wrote that the use of the Federal Reserve Bank’s term funding plan may be significant. Although the largest banks are unlikely to take advantage of the plan, the plan envisages a maximum usage scale of nearly $2 trillion, which is the nominal amount of bonds held by U.S. banks other than the top five. Although there…
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JPMorgan Chase: The Federal Reserve’s emergency loan plan could inject $2 trillion into the US banking system
According to reports, JPMorgan Chase said that the Federal Reserve’s emergency loan plan may inject $2 trillion into the US banking system. (Watcher.Guru) Interpretation of this information: The message states that JPMorgan Chase has estimated that the Federal Reserve’s emergency loan plan will provide a total of $2 trillion in injection into the US banking system. This could be seen as a measure to counter the economic impacts of the COVID-19 pandemic. The Federal Reserve’s actions to inject liquidity into the economy come in response to the widespread disruptions caused…
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The probability that the Federal Reserve will keep the interest rate unchanged in March is 32.1%
According to CME’s “Federal Reserve observation”, the probability of the Federal Reserve keeping interest rates unchanged in March is 32.1%, the probability of raising interest rates by 25 basis points to the range of 4.75% – 5.00% is 67.9%, and the probability of raising interest rates by 50 basis points to the range of 5.00% – 5.25% has dropped to 0%; The probability of a cumulative interest rate increase of 50 basis points by May is 55.2%, the probability of a cumulative interest rate increase of 75 basis points to…
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Former US Treasury official: The Federal Reserve will have to stop its high interest rate policy
It is reported that the former Assistant Secretary of the Treasury of the Federal Reserve said that the Federal Reserve would have to stop its high interest rate policy because it was destroying the balance sheet of the financial sector. The US banking system is not safe because the risk exposure of its five largest banks is twice the global GDP. Due to the global interconnection, the US banking crisis will spread abroad. Interpretation of this information: The former Assistant Secretary of the Treasury of the Federal Reserve expressed his…
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The Federal Reserve’s interest rate swap shows that the probability of the Federal Reserve raising interest rates by 25 basis points in March is stable at about 80%
It is reported that the rate swap of the Federal Reserve shows that the probability of the Federal Reserve raising interest rates by 25 basis points in March is stable at about 80%. Interpretation of this information: As per the report, the rate swap of the Federal Reserve indicating a steady probability of the Federal Reserve raising interest rates by 25 basis points in March at around 80%. This report shows that the market continues to expect the United States central bank to increase the cost of borrowing. The predictions…
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Summary of important developments at noon on March 14
7:00-12:00 Key words: interest rate increase, FBI, Federal Reserve, Iron Fish, Signature Interpretation of this information: The message seems to be referring to several different topics. Firstly, there is a mention of an interest rate increase. This likely pertains to the Federal Reserve, who has the power to adjust interest rates in order to influence the economy. An interest rate increase typically means that borrowing money will become more expensive, which can slow down spending and economic growth. Next, the message mentions the FBI, which is the Federal Bureau of…
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Nomura expects the Federal Reserve to cut interest rates by 25 basis points in March and suspend quantitative tightening
On March 14, Nomura predicted that the Federal Reserve would cut interest rates by 25 basis points in March and suspend quantitative tightening. (Cailian Press) Interpretation of this information: On March 14, Nomura, an Asia-based financial services group, made a prediction about the Federal Reserve’s monetary policy. The prediction was that the Federal Reserve would cut interest rates by 25 basis points in March and suspend quantitative tightening. The prediction comes on the back of recent US economic reports which have indicated that the economy is slowing down. These reports…
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BlackRock: Although the banking industry is under pressure, it is expected that the Federal Reserve will continue to tighten monetary policy
It is reported that the investment research institute of BlackRock, the world’s largest asset management company, said that although the pressure of the banking industry is weakening investor confidence and tightening the financial environment, the Federal Reserve will still need to continue to raise interest rates to cope with inflation. The agency said that the current development will not cause the Federal Reserve to suspend interest rate increase. The current environment is different from that in 2008, when all monetary policy levers were used to support the economy. Interpretation of…
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The market value of USDC returned to above $40 billion
It is reported that in the early morning of March 13, Beijing time, after the Federal Reserve announced the new emergency bank regular financing plan and supported the Silicon Valley bank depositors to use funds on Monday, local time, the US dollar anchor price rebounded, and the US dollar anchor has been basically restored. According to the data of coingecko, the current trading price of the US dollar is US $0.991933, up 2.7% in the past 24 hours, and its market value has returned to above US $40 billion, At…
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Overview of important developments overnight on March 13
21:00-7:00 Key words: Federal Reserve, Emergency Loan, USDC, Bank of Silicon Valley Interpretation of this information: The message refers to the Federal Reserve’s emergency loan facility for banks in the Bank of Silicon Valley. The Federal Reserve is a central banking system in the US, which provides banking services to the US government, offers protection to the public, and regulates the nation’s monetary policy. The emergency loan facility is a temporary source of funding for banks that are experiencing financial issues. The Bank of Silicon Valley has received a USDC…
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Federal Reserve: The Ministry of Finance will provide $25 billion in emergency loan support, and Signature Bank has closed
According to reports, the Federal Reserve said that the Treasury would provide $25 billion in emergency loan support, and the U.S. banking system remained resilient and stable. In order to provide liquidity to U.S. depository institutions, each Federal Reserve Bank will provide advance payments to eligible withdrawals, certain types of securities will be used as collateral, and the Federal Reserve will use various tools to support households and businesses. Interpretation of this information: The message refers to the actions taken by the Federal Reserve, the central banking system of the…