Australia jobs surge in Feb, unemployment shrinks
-- Australia’s labor force grew substantially more than expected in February, putting unemployment back at a six-month low as a swathe of people returned to work from...
-- Australia’s labor force grew substantially more than expected in February, putting unemployment back at a six-month low as a swathe of people returned to work from...
-- Japan’s exports grew more than expected in February, spurring a bigger-than-expected drop in the country’s trade deficit as demand in China and the U.S. remained...
According to PANews, the US Securities and Exchange Commission (SEC) is taking legal action to classify Ethereum as a security. This action involves issuing subpoenas to US companies, requiring them to provide all documents and financial records related to the Ethereum Foundation. The investigation began in September 2022 when the Ethereum blockchain transitioned to a new governance model called 'Proof of Stake'. Although the SEC has not commented on the matter, this move appears to be a significant review of the Switzerland-based Ethereum Foundation. This action could have far-reaching implications for the cryptocurrency industry, particularly in discussions about whether crypto assets are considered securities.
According to PANews, Federal Reserve Chairman Jerome Powell stated that the risks of achieving employment and inflation targets are being better balanced as the tense supply-demand relationship in the labor market eases. Inflation has significantly eased in the past year but remains above the Fed's set 2% long-term target, and long-term inflation expectations are still unstable. If appropriate, the Fed will maintain the federal funds rate target range at its current level for a longer period. Powell said that the Federal Open Market Committee believes it is 'inappropriate' to lower the target range before having confidence in inflation consistently moving towards 2%. However, the Fed has not yet gained the confidence to begin cutting interest rates from various data. Powell also mentioned that discussions took place during the meeting about slowing down the reduction of the balance sheet, and that it would be appropriate to slow down the pace of the reduction soon. Slowing down the reduction will ensure a smooth transition, alleviate pressure on the money market, and limit the risk of fluctuations in the money market.
According to Odaily: Recovery in the stock market and boost in risk assets, sparked by Federal Reserve Chairman Powell's stance on inflation, continued when he suggested that a rate cut in May or June hasn't been ruled out yet. The statement came on March 21, and has instilled further confidence in the market anticipating potential monetary relaxation. Earlier worries in the market, spurred by January and February's inflation reports, hinted at possible delays in the Federal Reserve's interest rate reductions. However, Powell's inflation perspective, along with his open stance about potential rate cuts in the coming months, has played a key role in recent stock market upturns, as gains continue to accelerate.
According to CoinDesk, US Rep. Patrick McHenry and Sen. Cynthia Lummis have stated that there is a potential path for a stablecoin bill in Congress this year, although they could not provide a specific timeline. The US Senate has been lagging on the stablecoin issue, with no committee work on a bill yet. McHenry, the chairman of the House Financial Services Committee, said that a stablecoin bill is largely worked out in the House of Representatives and just needs a scheduled floor vote. He has been working with Rep. Maxine Waters, the panel's top Democrat, on a stablecoin bill for nearly two years. Sen. Cynthia Lummis also spoke at the event, saying those working on the stablecoin bill in the Senate are speaking 'daily' with their House counterparts. She predicted that a compromise bill is the most likely crypto legislation to make it in 2024. Lummis noted that Sen. Chuck Schumer, the majority leader of the Senate, has said he is willing to consider such a bill. McHenry's committee has previously passed a stablecoin bill in his committee with a bipartisan vote that saw several Democrats supporting the Republican-driven version despite Waters' opposition.
According to Odaily: Federal Reserve Chairman, Powell, on March 21, weighed in on the issue of the Central Bank Digital Currency (CBDC), stating that it is premature for the Federal Reserve to investigate it. He affirmed that for a digital dollar to be launched, legislative authorization is mandatory. It was made clear that the Federal Reserve is far from launching a Central Bank Digital Currency of its own. This stance by the Chairman emphasizes the complexity and regulatory challenges the potential adoption of digital currencies presents to financial establishments globally.
Following recent deliberations, Federal Reserve Chairman Powell has hinted at a significant upcoming shift in the US monetary policy. Powell indicated on March 21 that the policy interest rates might have peaked, making it fitting to start easing monetary policy at some point during the year. Powell spotlighted the considerable economic progress, emphasizing the notable tapering off of inflation. However, he acknowledged that in spite of ongoing efforts to lower inflation, uncertainties persist in the economic outlook. While job creation remains strong, Powell underlined that robust employment growth alone wouldn't suffice to delay rate cuts. He clearly stated that if the labor market weakens substantially, it would provide a suitable context to initiate interest rate reductions. These recent statements from the Federal Reserve Chairman have instilled market confidence, prompting a return to risk assets and a boost in the stock market, even though the potential for interest rate cuts in May or June hasn't been ruled out. The Federal Reserve continues to monitor several complex factors shaping their monetary policies, with a particular watch on employment trends and inflation.
According to PANews, the US Federal Reserve has decided to keep the federal funds rate target range unchanged between 5.25% and 5.5%, in line with market expectations.
According to Blockworks, the Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, removed the warrant canary from its website on February 26. The removal indicates that the foundation has received a government subpoena. Ethereum web developer Pablo Pettinari wrote, "[W]e have received a voluntary enquiry from a state authority that included a requirement for confidentiality," alongside a code commit removing the canary. The Ethereum Foundation is responsible for handling grants and providing research for the Ethereum ecosystem, but it does not control or lead Ethereum. Ethereum co-founder Vitalik Buterin serves on its executive board. In 2019, the Ethereum Foundation mistakenly removed its warrant canary, but this time it appears to be a genuine removal. The price of ether (ETH) fell more than 2% immediately after the news broke, contributing to a bearish week for the token. Some industry watchers believe that the Ethereum Foundation's "voluntary enquiry" may not be a significant issue. Mike Selig, partner at Willkie Farr & Gallagher, said, "It's extremely common for crypto protocol foundations to receive voluntary requests for information from federal and state regulators. And subpoenas are about as sure as the sunrise for a crypto entity." The Ethereum Foundation has not yet responded to a request for comment.