Eagle Crest Asset Management

June 6, 2024

US Federal Reserve May Cut Interest Rates in Coming Quarters, Predicts Jupiter Asset Management

According to Odaily, Jupiter Asset Management's Fixed Income Investment Manager, Harry Richards, has suggested that the US Federal Reserve may follow the European Central Bank's lead and cut interest rates in the coming quarters. This prediction comes in light of the weakening US labor market, increasingly evident consumer fatigue, and further easing of housing inflation. Richards warned that if the Federal Reserve continues to maintain higher interest rates while other developed countries' central banks are easing their monetary policies, it could lead to serious consequences. The US economy's current state, with a softening labor market and weakening consumer strength, may necessitate such a move by the Federal Reserve. The European Central Bank's decision to cut interest rates has set a precedent that the US Federal Reserve may need to follow to maintain economic stability. The potential consequences of maintaining higher interest rates while other economies are easing could be severe, and this warning from Richards underscores the importance of closely monitoring these economic indicators.

June 6, 2024

US Federal Regulators to Investigate Dominance of Microsoft, OpenAI, and Nvidia in AI Industry

According to Odaily, US federal regulators have reached an agreement to launch an antitrust investigation into the dominant positions of Microsoft, OpenAI, and Nvidia in the artificial intelligence industry. This move is seen as the strongest indication of an upgraded regulatory review of this powerful technology. Insiders revealed that the US Department of Justice and the Federal Trade Commission reached this agreement over the past week and it is expected to be finalized in the coming days. According to the agreement, the Department of Justice will lead the investigation into whether the behavior of Nvidia, the largest artificial intelligence chip manufacturer, has violated antitrust laws. The Federal Trade Commission will play a leading role in reviewing the behavior of OpenAI and Microsoft. This move signifies a significant step in the regulatory scrutiny of the AI industry, as these companies hold substantial influence in the sector.

June 5, 2024

Economists Predict Federal Reserve's First Interest Rate Cut in September

According to Odaily, a survey of 116 economists revealed that 74 of them predict the Federal Reserve will make its first interest rate cut of 25 basis points in September. Only five economists forecast a rate cut in July, a decrease from 11 in a May survey. No one predicted a rate cut in June. Oscar Munoz, Chief US Macro Strategist at TD Securities, stated that the Federal Reserve is in a favorable position considering the current monetary policy's constraints on the economy. Out of the 116 respondents, 68 predicted two rate cuts this year, roughly consistent with last month's survey. With persistent high inflation, particularly the PCE price index, and extremely low unemployment rates, the possibility of an early rate cut is slim. The median forecast shows that inflation indicators such as CPI, core CPI, PCE, and core PCE are not expected to reach 2% until at least 2026. The unemployment rate is expected to remain close to the current 3.9% until at least 2027, indicating that the labor market will continue to be tight.

June 5, 2024

UAE Central Bank Approves Stablecoin Regulation and Licensing Rules

According to Foresight News, the Central Bank of the United Arab Emirates (CBUAE) board has approved the issuance of stablecoin regulation and licensing rules. These rules clarify the issuance, licensing, and regulation of payment tokens supported by the UAE Dirham (AED). Legal experts in the UAE have stated that payment tokens must be backed by the UAE Dirham (AED) and cannot be linked to other currencies, digital assets, or algorithms. Merchants and service providers can only accept tokens supported by AED and cannot accept other virtual assets. This move by the CBUAE is seen as a significant step towards regulating the use of digital currencies in the country, ensuring that they are backed by a stable and recognized currency. The new rules aim to provide clarity and security for businesses and individuals using these payment tokens, while also protecting the integrity of the UAE's financial system.

June 5, 2024

US ADP Employment Figures Show Smallest Increase Since January

According to BlockBeats, the US ADP employment figures for May recorded an increase of 152,000, falling short of the anticipated 175,000. This marks the smallest increase since January of this year. The data indicates a slower growth in the job market, which could potentially impact the economic recovery process. Further details or implications of this development are yet to be disclosed.

June 5, 2024

Binance Empowers INTERPOL with Advanced Cybercrime Investigation Training

Binance is doubling down on its commitment to enhancing security in the crypto space. Coming off the heels of the positive symbiosis during the earlier introductory session, Binance's Financial Crime Compliance (FCC) team successfully conducted an advanced training session for officers of the International Criminal Police Organization (INTERPOL) on May 29, 2024. The one-off training used practical case studies stemming from the FCC team's investigations, thereby showcasing specific methods employed in cryptocurrency crime analysis. This initiative is aimed at strengthening the understanding and efficiency of INTERPOL officers in handling cryptocurrency crimes and Web3 cyber policing. Horest Au Yeung, an INTERPOL representative, underscored the value of the collaboration, quoting, "The real-world case studies shared by Binance’s FCC team offered new perspectives on cryptocurrency investigations. This strategic partnership can intensify our capabilities and knowledge pool." Jarek Jakubcek, Binance's Head of Law Enforcement Training, expressed his satisfaction with the ongoing collaboration between Binance and INTERPOL. He highlighted the necessity and impact of collective action and mutual knowledge sharing in tackling cybersecurity threats in the crypto milieu. In his words, "Our collaboration with INTERPOL is not just about joining forces - it's inherently about stepping up to the challenge. We remain committed to working closely with global law enforcement agencies in the fight against criminal activity." In 2023 alone, the Binance FCC team held 120 workshops and training sessions for global cybercrime specialists and processed over 58,000 requests from law enforcement agencies. This collaboration with INTERPOL further signals Binance's commitment to combating cybercrime in the ever-evolving digital finance landscape.

June 5, 2024

Federal Reserve Likely To Maintain Interest Rates, Predicts CME

According to Odaily, the CME's 'Federal Reserve Watch' has predicted that the Federal Reserve is highly likely to maintain its current interest rates. The probability of the rates remaining unchanged in June is estimated at 99.8%, with a mere 0.2% chance of a 25 basis point increase. Looking further ahead to August, the likelihood of the rates staying the same is predicted at 82.3%. The possibility of a cumulative 25 basis point reduction is estimated at 17.5%, while the chance of a 25 basis point increase is projected at a minimal 0.1%. These predictions indicate a strong inclination towards stability in the Federal Reserve's interest rate policy in the coming months.

June 3, 2024

Investors Await Key Economic Reports Ahead of Federal Reserve Meeting

According to CryptoPotato, the final week of employment data before the Federal Reserve meeting on June 12 is underway. Investors are keenly observing several economic reports that will influence the Fed's future policy decisions. The job market reports due on Friday are of particular interest. Meanwhile, the crypto markets have seen minimal movement over the weekend for most digital assets. The week started with the release of May's ISM Manufacturing PMI (Purchasing Managers' Index) report, which provides insights into the business conditions in the U.S. manufacturing sector. This data is a reliable leading indicator for assessing the state of the U.S. economy and can help anticipate changing economic trends. The services sector, contributing over 70% of the U.S. GDP, is considered more significant. On Wednesday, the May ISM Services PMI will be released, serving as another leading indicator of changes in economic conditions. The week's key events include the release of ISM Manufacturing PMI data on Monday, JOLTs Job Openings data on Tuesday, ADP Nonfarm Employment data and ISM Non-Manufacturing PMI data on Wednesday, May S&P Global Services PMI data also on Wednesday, and the May Jobs Report on Friday. Friday's Payrolls and Unemployment reports from the Labor Department's Bureau of Labor Statistics are the most significant. These reports provide the number of new jobs created during the previous month and the percentage of active employment seekers. Policymakers closely follow these figures, which are strongly associated with the overall health of the economy. The Fed also pays close attention to labor market changes when determining its policy decisions. The Global Macro Investor commented, 'It will be key to see whether the US labor market continues cooling. Wall Street analysts expect 180,000 new jobs to be added and the unemployment rate to stay at 3.9%. Meanwhile, revised US labor market data already points to a recession.' In the crypto market, it is unlikely that this week's employment and economic reports will significantly impact the markets, which are more closely affected by CPI inflation reports. The total market capitalization has remained steady over the past few days at $2.68 trillion. Bitcoin prices began to rise during the Monday morning Asian trading session, adding 1.4% on the day to reach $68,619. Ethereum recovered minor losses to return to $3,800, and the altcoins were mostly flat, with Toncoin adding 10% over the past 24 hours.