Jay Powell warns the Federal Reserve is undergoing a stress test

The post Gold holds below two-week top as Iran risks and hawkish Fed lift USD appeared on BitcoinEthereumNews.com. Gold (XAU/USD) kicks off the new week on a subdued note and remains on the back foot below a two-week top, around the $4,600 neighborhood, touched on Friday. Persistent geopolitical uncertainties, along with hawkish US Federal Reserve (Fed) expectations, help the US Dollar (USD) regain positive traction, which, in turn, is seen as a key factor acting as a headwind for the commodity. The precious metal, however, manages to hold above the $4,500 psychological mark as trades seem hesitant and opt to wait for further progress in US-Iran peace talks. Iran’s Foreign Minister, Abbas Araqchi, told state media on Sunday that talks and message exchanges with the US are ongoing, though he cautioned against reading too much into unconfirmed reports about the negotiations. Earlier, Iran’s chief negotiator, Mohammad Bagher Qalibaf, stated that the country will not accept any agreement u

The post Fed’s Powell says credibility lost if President can fire officials appeared on BitcoinEthereumNews.com. Former Federal Reserve (Fed) Chair Jerome Powell said the US central bank would damage public trust that’s required to support a strong and stable economy if any president were free to dismiss Fed officials over policy disagreements, Bloomberg reported on Monday. Powell’s remarks came as the US highest court is deliberating the fate of Fed Governor Lisa Cook, whom US President Donald Trump has sought to fire over unproven mortgage fraud allegations. Cook has denied the charge. Key quotes If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well. The Fed’s credibility would be lost. Our credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for our fellow citizens and for generations to come. Market reaction  At the time of writing, the US Dollar I

The Fed's stress test overhaul aims to enhance transparency and resilience, potentially stabilizing investor confidence amid legal scrutiny. The post Jay Powell says the Federal Reserve is undergoing its own stress test appeared first on Crypto Briefing.

Federal Reserve governor Christopher Waller told a conference on Sunday that stablecoins expand the reach of US policy while the Bank of England’s Megan Greene expects their popularity will soon fade.

The post Fed Gov. Eyes Stablecoins To Expand US Policy Reach Amid CLARITY Act Push appeared on BitcoinEthereumNews.com. Federal Reserve Governor Christopher Waller shared optimistic remarks on stablecoins today. The Fed official believes that stablecoins could help the Fed’s policy to spill over to nations that are more embracing of dollar-backed digital currencies. Fed Governor Shares Views On Stablecoins At the event in Croatia on Sunday, Waller likened stablecoin adoption to the fixed exchange-rate system. “Countries that adopt it, it’s like a fixed exchange rate system,” Fed’s Waller said. He added, “You are going to import US monetary costs, so it’s broadening the reach of US monetary policy in countries that use more stablecoins.” For context, Waller has been pro-stablecoin in the past. Earlier, he said that stablecoins could help increase the U.S. dollar’s dominance in the world economy if they are well-regulated. Earlier, the Fed governor also lashed out on CBDCs. CBDC is a “so

The post The Federal Reserve In No Way Enables Federal Government Expansion appeared on BitcoinEthereumNews.com. Facade of the Marriner S Eccles building of the United States Federal Reserve, the agency of the Federal Government responsible for setting the monetary policy of the United States, as well as determining interest rates, Washington, DC, July 24, 2017. (Photo via Smith Collection/Gado/Getty Images). Getty Images Governments have no resources. They can only consume insofar as they have taxable access to private sector production. If you were to say the above at the libertarian Cato Institute, the libertarian leaning Mises Institute, the conservative American Enterprise and Hoover Institutions, and even at the increasingly populist Heritage Foundation, the audience and scholars at all five institutes of thought would nod along in agreement. Which is why it’s puzzling that those same centers of right-leaning thought have created a policy “out” for themselves. The Federal Reserve

The post New US inflation report leaves Bitcoin with a problem the Fed cannot solve yet appeared on BitcoinEthereumNews.com. Headline PCE inflation rose 3.8% in April from a year earlier, its hottest pace in two years and nearly double the Federal Reserve’s 2% goal, while core PCE held at 3.3%, its highest reading since October 2023. The monthly numbers ran cooler, with core easing to 0.2% against the 0.3% economists had expected. Bitcoin saw that combination of numbers as a problem, sliding toward $73,300 in the hours after Thursday’s release and hovering near $73,000 through the weekend, down roughly 30% across the past year. The PCE inflation report brought enough monthly relief to keep the rate-cut rate going, and enough annual heat to keep liquidity scarce. What makes this report land harder than most is the timing, since it’s the first major inflation spike of Kevin Warsh’s tenure as Fed chair, a job he stepped into on May 22 after succeeding Jerome Powell. Warsh built his reputa

The post The Fed’s rate lever is breaking as bond markets stop following its lead appeared on BitcoinEthereumNews.com. For decades, the Fed stabilized the economy with one simple tool: interest rates. Raise them to cool inflation, and cut them to stimulate growth. But after years of massive government borrowing, post-pandemic inflation, and repeated stress inside the Treasury market, that system may no longer work the way Americans expect. Today, the Fed can cut rates while long-term borrowing costs stay elevated, mortgage rates remain high, and bond markets react as if the central bank is losing control of the financial system’s most important lever. At the same time, it has also resumed expanding parts of its balance sheet again to support market liquidity, raising a bigger question on Wall Street: if emergency support is still needed during relatively calm periods, what happens during the next real crisis? The Fed controls less than you think Most Americans are familiar with a simpl