Aurelia Butler

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    in Economy

    Powell flags cooling labor market as emerging risk as Fed moves closer to cuts

    “Elevated inflation is not the only risk we face,” Powell said Tuesday in testimony before the Senate Banking Committee, noting that the “labor market has cooled really significantly across so many measures.”For a long while, curbing high inflation was the key, arguably the only risk for the Fed, and its other main policy focus, maximum employment, didn’t get much attention. And for good reason as jobs remained plentiful.  But with the labor market showing signs of cooling — the Fed has been forced to shift focus and acknowledge the risk is becoming two-sided as keeping policy too high for too long could leave a big dent in employment and the economy.  “Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” Powell said, after noting that labor market indicators “have returned to about where they stood on the eve of the pandemic”The Fed’s acknowledgement that risks are more two-sided suggests that the central bank’s outlook on the balance of risks is shifting …  “in ways that would plausibly underpin a cut in September rate cut,” , Evercore ISI said Tuesday. While the Fed chief appears to laying the breadcrumbs for a September cut, incoming economic data still holds sway, Evercore ISI adds, ahead of  Thursday’s inflation report that could “sustain and support the Fed’s evolving assessment.”Others agree and point to the Jackson Hole annual symposium in August as the potential opportunity for the Fed to firm up expectations for a September rate cut. “If we are right and the data comes in as we project, we suspect that the Jackson Hole symposium in late August will be used as the venue to give the market the clearest indication on impending policy loosening,” ING said in a Tuesday note. More

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    in Economy

    US Treasury’s Yellen: inflation will continue to ease over time

    WASHINGTON (Reuters) – Rent and housing costs are keeping U.S. inflation higher than preferred but consumer price pressures will continue to come down over time, Treasury Secretary Janet Yellen said on Tuesday, as a top White House adviser cited what she called “tremendous progress” in bringing down inflation.Yellen told the U.S. House of Representatives Financial Services Committee that inflationary factors including supply issues and labor market tightness have eased, which would help continue to drive down consumer price pressures.”I believe that it (inflation) will continue to come down over time. Rents and housing costs continue to leave it higher than we would ideally like,” Yellen told the U.S. House panel on financial services.”Although the labor market was initially very tight, now we have a strong labor market, but one with fewer pressures that would create inflationary concern, so inflation is coming down,” she said.Lael Brainard, chair of the White House National Economic Council and a former vice chair of the Federal Reserve, said the Biden administration is encouraged by continued progress on lowering inflation, but President Joe Biden would keep fighting to lower the cost of living for working families.Brainard said several months of data had confirmed that inflation was returning to the Fed’s 2% target, noting that the most recent data showed an inflation level of 2.6%, which she said marked “tremendous progress.” The inflation target is set in reference to the Personal Consumption Expenditures price index, which as of May was increasing at a 2.6% year-over-year rate.Looking more closely at the underlying categories of inflation showed an actual reduction in food prices, and gasoline prices holding steady at around $3.50 a gallon over the July 4 “driving holiday,” Brainard added.”But we also know that Americans are still squeezed by the cost of living,” Brainard said. She said Biden would continue to push for more affordable housing, slower increases in rents and the introduction of tax credits to help first-time homeowners.The Fed receives consumer price information for the month of June on Thursday. The consumer price index did not rise at all in May, and analysts anticipate another weak reading later this week. More

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    in Cryptocurrency

    Peter Schiff Issues Warning on Bitcoin (BTC) Price Action: Details

    Schiff, a longtime critic of Bitcoin, has constantly claimed that it has no intrinsic value and is a speculative asset doomed to fail. In response to a recent tweet, Schiff stated that Bitcoin’s recent price movements might be indicative of an impending crash.”All sarcasm aside, it’s hard to tell if this time the bubble finally has popped. The one thing that’s for sure is that it is, in fact, a bubble. Since all bubbles ultimately pop, it’s inevitable that the Bitcoin bubble will pop too,” Schiff wrote.Schiff’s warning comes at a time when the cryptocurrency market is experiencing volatility. Recent weeks have seen significant price fluctuations, with Bitcoin reaching lows last seen since February.His latest claim about an impending Bitcoin bubble burst adds to his long history of skepticism toward the cryptocurrency. Despite Schiff’s warnings, many in the cryptocurrency community remain bullish on Bitcoin’s future.Digital asset investment products saw positive inflows for the first time in a month, as cryptocurrency prices fell to their lowest levels in months. Bitcoin digital funds led the pack with nearly $400 million in inflows, reversing a three-week period in which products for the world’s largest cryptocurrency lost more than $1.2 billion.At the time of writing, BTC was up 1.79% in the last 24 hours to $57,705. This article was originally published on U.Today More

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    in Cryptocurrency

    Jerome Powell’s Market Update Spurs Crypto Response: Details

    Setting the stage for a two-day speech on Capitol Hill this week, the central bank chief on Tuesday acknowledged some easing in inflation, which he said officials are determined to get down to their 2% target.”At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” Powell stated while, also expressing concerns that holding interest rates too high for too long could hinder economic growth.Markets expect the Fed to start decreasing rates in September, followed by another quarter percentage point decrease by the end of the year. During their June meeting, FOMC members signaled only one cut.Following these remarks, Powell will testify at the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. Several other Fed officials are slated to speak this week, which may provide additional insights about the Fed’s economic and monetary policy expectations.Cryptocurrencies traded higher as the market viewed Jerome Powell’s economic remarks as balanced, supporting expectations that the Federal Reserve will begin decreasing interest rates this year.As of press time, Bitcoin and several other cryptocurrencies were up. BTC rose 2% in the last 24 hours to $57,200. Several cryptocurrencies in the top 100 had gains ranging from 2% to 13%. Tron (TRX), PEPE and BONK all had gains of over 6%.Fluctuating expectations for cuts in U.S. interest rates had lessened demand for riskier assets in recent weeks, with Bitcoin falling to lows last seen in February.This article was originally published on U.Today More

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    in Cryptocurrency

    Phoenix Memecoin ($PHNX) Launches with Innovative Tokenomics and Community Focus

    Phoenix Memecoin ($PHNX) is gaining attention for its unique combination of innovative technology and a strong, community-oriented approach.About Phoenix Memecoin ($PHNX)Phoenix Memecoin ($PHNX) is a new cryptocurrency designed to symbolize rebirth and innovation within the crypto world. Supported by a dedicated and rapidly growing community, Phoenix Memecoin aims to offer stability and long-term growth through its thoughtful tokenomics and strategic planning.Key Features of Phoenix Memecoin ($PHNX)ContactJonathan [email protected] article was originally published on Chainwire More

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    in Cryptocurrency

    Bitcoin Sentiment in Worst State in 12 Months: Santiment

    Expanding the data, the weighted sentiment for Bitcoin comes in at -0.962775. According to Santiment, this poor sentiment is not entirely a bad thing. This is because an accompanying rebound is just around the corner. The data platform pointed out that should this rebound emerge, it might catch many traders off guard at its peak.The slowdown in Bitcoin chatter is explainable with the current outlook of spot Bitcoin ETF products. While this product has continued to record inflows, occasional outflows always dampen sentiment overall.The price action has also contributed to this poor metric. At the time of writing, data from CoinMarketCap pegs the price of Bitcoin at $57,490.48, up marginally by 0.71% in 24 hours. The coin is seeing a recovery after shedding more than 8% of its value in 24 hours.Analysts and traders have been waiting for this event, potentially accounting for why attention on BTC is down at the moment.This article was originally published on U.Today More

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    in Cryptocurrency

    DOGE Founder Discusses Potential $5 Million Opportunity

    This time, Markus pondered a hypothetical opportunity to make $5 million within one year. He suggested this idea to the crypto community, picking their minds on this potential profit. In his tweet, he asked: “Would you fly on 8 hours of boeing flights a day for a year in exchange for 5 million dollars?”The discussion mostly seemed to be about the quality of flights on Boeing (NYSE:BA) planes and anxiety attacks during flights. Shibetoshi Nakamoto never revealed if he would agree to do that in exchange for $5 million.Markus published a meme of a sinking yacht, called “No worries.” This title answers the meme’s question, which goes: “How is your crypto?”Since Monday, Bitcoin has demonstrated a roller coaster-shaped trajectory, first rising by 6.20% and reaching $58,150. That increase was followed by a 4.8% drop, and by now, it has finished with a 3% increase again. At the time of this writing, Bitcoin is changing hands in the $57,250 zone.The study claims that people who invest in crypto assets tend to have “dark traits” in their personalities. The study refers to the “dark tetrad.” Shibetoshi Nakamoto tweeted that he opposes that opinion strongly: “I disagree and let me lengthily argue why I am right.”This article was originally published on U.Today More

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    in Cryptocurrency

    Legendary Bitcoin Trader Peter Brandt Unveils His Trading Secrets

    Thus, the trader emphasized that he avoids trendlines, most indicators, day trading and taking losses. He also ignores win rates, what his trading peers are doing and the fundamentals of the market.In addition, Brandt shared that he limits his risk to no more than 70 basis points per trade and does not worry about getting stopped out or getting stuck on a particular market or asset class.This unconventional approach to trading, which focuses more on disciplined risk management and psychological resilience, has earned Brandt legendary status in the trading world.However, the trader noted that for a true double top formation, the depth of the “top” in Bitcoin would need to be around 20% of the price, while the current depth is only around half of the required amount. This suggests that while there is potential for a bearish reversal, the pattern is not yet fully confirmed.This article was originally published on U.Today More