Fed Governor Notes Fading Crypto Euphoria; Chinese Exchanges Tighten Rules; Senators Query UAE Stake in WLFI

Federal Reserve's Kashkari: Waller is fully qualified to serve as Federal Reserve Chair

Minneapolis Federal Reserve President Kashkari says Waller is qualified to serve as Federal Reserve Chair and looks forward to further discussions. Although the White House officially nominated Waller, his nomination probability has dropped to 95%, while Judy Shelton's nomination probability has increased to 4-5%. Experts believe that even if Waller is not nominated, Shelton is unlikely to become a potential candidate.

The President of the German Federal Bank hopes to launch a stablecoin pegged to the euro to prevent dollarization.

European Central Bank's Nagel pointed out that euro-denominated stablecoins can reduce cross-border payment costs and address the risks posed by dollar stablecoins. He emphasized that if dollar stablecoins replace domestic currencies, it could weaken the effectiveness of monetary policy. Currently, the European Central Bank is evaluating distributed ledger technology and plans to launch the digital euro in 2029.

FOMC Minutes Hint at a Possible Rate Hike, Trouble For the Crypto Market?

FOMC minutes suggest a potential rate hike despite inflation dropping to 2.40%. The current federal rate is unchanged at 3.50%-3.75%, while the crypto market lost 1.55% in value amid concerns over investor appetite.

Federal Reserve researchers say Kalshi data can provide real-time insights for policy making

A paper by three Federal Reserve researchers suggests that data from the prediction market platform Kalshi can more promptly reflect macroeconomic expectations and recommends incorporating it into the Federal Reserve's decision-making framework. This data responds quickly after major policy and economic data releases, but the paper does not represent an official policy stance.

The Federal Reserve injected $18.5 billion into the U.S. banking system this week, marking the fourth-largest liquidity injection since the COVID-19 pandemic.

ChainCatcher reports that, according to Barchart, the Federal Reserve injected $18.5 billion into the U.S. banking system this week through overnight repurchase agreements. This is the fourth-largest liquidity injection since the COVID-19 pandemic and even surpasses the peak during the dot-com bubble. The chart shows that since 2021, liquidity injection peaks mainly occurred during periods of pandemic and economic stress. This recent injection reflects tight bank reserves, possibly due to quarter-end funding needs or broader credit tightening.

Fed Meeting Minutes First Mention of "Possible Rate Hike"! Federal Reserve Voice: Officials Lack Confidence in Inflation Returning to 2%

The latest Federal Reserve meeting minutes show that if inflation remains above the 2% target, there may be a shift towards rate hikes, with clear internal disagreements on the interest rate path. The meeting decided to keep rates at 3.50%-3.75%, indicating that combating inflation is the top priority. The timeline for inflation to return to 2% is becoming increasingly uncertain, reflecting future rate cut uncertainties.