Substantial further progress toward maximum employment “all but met,” Fed chair says.
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Powell said that the central bank may begin tapering its $120 billion/month asset purchases this year, although a rate hike will not be coming soon.
Federal Reserve Chairman Jerome Powell said a strong argument in favor of a US digital dollar is the CBDC’s ability to undermine cryptocurrencies and stablecoins.
The CPI surged 5.4% in the year ending in June, the largest year-over-year gain since 2008, but the numbers are unlikely to influence Fed policy anytime soon.
U.S. equities whipsawed following the Fed’s mildly-hawkish announcement last week. The Dow spiraled after Chair Powell hinted at interest rate hikes, benchmarking its worst stretch in over six months. But the index rallied this week, after Powell reassured investors that a 5% inflation environment would be unacceptable.
Weekly initial jobless claims and gross domestic product growth rates were released Thursday as economists and consumers await Friday’s core personal consumption expenditures data.
Despite its volatility, crypto keeps attracting more and more venture capitalists. VC firm Andreessen Horowitz raised $2.2 billion for Crypto Fund III. The venture giant now allocates $3 billion to the asset class.
Bitcoin shot up 10%, rallying to $35,000, after plunging the day before to a five-month low for the cryptocurrency.