SO WHAT THE HELL HAPPENED THIS WEEK? THE FEDS - TIME TO MOVE ON
Can’t stop, won’t stop
Fed Chair Jerome Powell says his vows in front of the whole world, pledging to fight inflation for better or worse, for richer or poorer, till rate hikes do them part.
J-Pow handed the market yet another 75bps rate hike on Wednesday, an increase that was fairly widely expected given the Fed’s stronger-than-usual wording on the inflation situation and a 0.1% MoM increase in consumer prices in August – it’s the third hike of this size in a row and takes rates to between 3% and 3.25%, the highest in 14 years.
Stocks ricocheted around the charts on Wednesday
, with all four major US indices selling off and the dollar
hitting a fresh 20-year high. J-Pow’s determined to get inflation down to 2% and targeting the labor market and housing will help achieve the Fed’s mandate – it likely means unemployment will go up and house prices will go down, which would leave a mark on risk assets.
“The chances of a soft landing are likely to diminish” said the Fed Chair, adding that the agency expects rate hikes to rise at a faster pace and to a higher level than originally hoped – prolly to a range of 4.25%-4.50% by December. JPMorgan’s Jamie Dimon agrees, urging lawmakers to prepare for a worst-case scenario.
In Crypto Recap?
- Jamie Dimon, the CEO of JPMorgan, said cryptocurrencies were “decentralized Ponzi schemes” in his congressional testimony on Wednesday.
- Ethereum (ETH) token issuance has dropped by 95% since the network switched to proof-of-stake.
- The Wall Street Journal says Coinbase has been Prop-trading–Coinbase denies it.
- Jesse Powell, the co-founder and CEO of the cryptocurrency exchange Kraken, has stepped down.
- Bitcoin and Ethereum are down 5% and 12.5% on the week, respectively.
Crypto exchange Binance suffered an accounting error which resulted in 4.8 million HNT
tokens being distributed to users. Those assets were worth some $19 million.
It has been reported that South Korean authorities are asking Interpol to issue a “red notice” for Do Kwon, the co-founder of Terra. If the red notice is issued, law enforcement worldwide are requested to locate and arrest the person of interest, in this case Kwon.
MicroStrategy has purchased a further 301 BTC
during the latest dip for $6 million. This brings the company’s total holdings to 130,000 BTC, with an average price of $30,639 per BTC.
Decentralized WiFi network Helium is set to move away from its own network to Solana. This comes after Helium community members voted in favor of migrating the network in order to help scale the protocol.
Exchange provider Nasdaq is reportedly set to offer crypto custody services to institutional investors. The bourse has hired former Gemini Prime head Ira Auerbach to lead Nasdaq Digital Assets.