Federal Reserve Financial News

Digital asset bank Custodia Bank has been denied a U.S. Federal Reserve master account by the United States District Court for the District of Wyoming. 

The Bitcoin (BTC) bull run has clear skies above following the Federal Open Markets Committee (FOMC) interest rate decision on Wednesday.

The Federal Reserve Bank of Atlanta has raised warning over risks associated with blockchain and cryptos.

The U.S. Republican senators have introduced a bill aiming to ban Federal Reserve-backed central bank digital currency (CBDC).

The US Fed Governor Christopher Waller, who previously voiced cryptos are “risky,” now throws a positive stance on dollar-pegged stablecoins.

Wall Street braced for a chilly reality as hotter-than-expected inflation data sent major indexes tumbling on Tuesday. The Labor Department report revealed US consumer prices surged in January, exceeding forecasts and fueled by rising shelter costs. This unexpected heatwave extinguished investors’ hopes for imminent interest rate cuts.

The Fed will likely delay the timing of the first cut further, potentially clashing with the presidential election in November.

In the minutes from the Federal Open Market Committee last month, the central bank dampened market hope by forecasting only three 25bps cuts throughout the year, while futures markets predict six.

Kristalina Georgieva (pictured) is managing director of the IMF.

Jerome Powell (pictured), chair of the US Federal Reserve

Shelter costs continued to be the largest contributor to core inflation throughout the month, as prices increased 0.4% in November.

Banking giant Goldman Sachs projects two interest rate cuts in the United States by the Federal Reserve in 2024 with the first to be announced in the third quarter.

Bitcoin’s longest winning run since May lifted the token past $44,000, sparking questions about whether the breakout increasingly reflects a conviction that looser Federal Reserve monetary policy lies ahead. The largest digital asset climbed for six days through Tuesday, adding roughly 16%, and was consolidating the gains in early Asian trading on Wednesday. Its 2023 rebound from last year’s crypto rout now stands at 165%. Much of the rally is pegged to the prospect of the US allowing its first spot Bitcoin exchange-traded funds, paving the way to a wider investor base. BlackRock Inc. and Fidelity Investments are among those awaiting the outcome of their applications, with some analysts expecting a green light by January. But ETF hype has shadowed Bitcoin since June, when asset managers began seeking approval to roll out the funds. That’s leading some to ask if the token’s surge is now drawing more succor from wagers on Fed rate cuts next year.

'While job growth is falling compared to last year, it is holding up remarkably well in the face of a tough economic picture and slowing growth globally.'

Bitcoin has broken above $40,000 for the first time this year as it rides a wave of momentum on broad enthusiasm about U.S. interest rate cuts and as traders anticipate the imminent approval of U.S.-stockmarket traded bitcoin funds. The world's biggest currency hit as high as $40,210 in Sunday trade, its highest since April 2022. It was steady at $40,011 in thin trade early in the Asia day on Monday. «We'll see if it sticks throughout the day, but bitcoin loves a break of big psychological levels, so it excites the bit-bugs again and adds to this momentum,» said Capital.com analyst Kyle Rodda. For the year, bitcoin has more than doubled as it has thrown off the doldrums of the so-called «crypto winter» that followed scandals including the collapse of exchange FTX last year.

While markets have begun pricing in rate cuts from key central banks in 2024, it is 'clear that higher interest rates are here to stay'.

SoFi Technologies Inc., a financial services company, has decided to exit the cryptocurrency sector due to increased scrutiny by banking regulators.

Bitcoin (BTC) shrank back from resistance after the Nov. 29 Wall Street open as United States GDP figures beat expectations.

Following the upwards revision today (29 November), market odds for a Federal Reserve rate cut as soon as its March meeting spiked, rising from 34.6% yesterday to 44.5%.

Bitcoin (BTC) starts a new week keeping traders guessing near its highest levels in 18 months — what’s next?

At the start of this month, the central bank held interest rates for the second successive meeting, seemingly bringing an end to the hiking cycle.