On Wednesday, May 1, 2024, the U.S. Federal Reserve chose to maintain the benchmark interest rates at their highest in 23 years. The Federal Open Market Committee (FOMC) members noted that although inflation has subsided, it still “remains elevated.” No Change in Federal Funds Rate; Fed Continues Watchful Eye on Inflation Risks On Wednesday, the […]
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Germany’s Largest Federal Lender LBBW Ventures Into Crypto Custody, Targets Mid-2024 Launch
Landesbank Baden-Württemberg (LBBW), Germany’s largest federal bank, has announced plans to offer crypto custody services later in the year. LBBW revealed its collaboration with Bitpanda, based in Austria, and stated that it will begin these services focusing on bitcoin and ethereum, the top two cryptocurrencies by market capitalization. LBBW and Bitpanda Collaborate to Offer Bitcoin […]
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Australian Securities Regulator Appeals Federal Court Ruling Favoring Finder Wallet
The Australian securities regulator has said it will appeal the federal court’s dismissal of its civil penalty proceedings against Finder Wallet Pty Ltd. The regulator launched penalty proceedings against the crypto firm on Dec. 15, 2022, just days after Finder Wallet withdrew its Earn product. Product Finder Lacked the Necessary License or Authorization The Australian […]
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Federal Reserve’s Neel Kashkari on Bitcoin: Still No Legitimate Use Case in an Advanced Democracy
The president and CEO of the Federal Reserve Bank of Minneapolis, Neel Kashkari, has expressed concern about consumer risk due to “fraud, hype, and confusion” surrounding bitcoin. Moreover, he said the cryptocurrency has been around for more than a decade but “there’s still no legitimate use case in an advanced democracy.” ‘I Am Worried From […]
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Byte Federal Launches Point of Sale System for Merchants Seeking to Accept Bitcoin
PRESS RELEASE. Byte Federal, a leading company in the global financial technologies space, is proud to announce the official launch of its point of sale (POS) system, ByteConnect. This product launch marks a significant expansion of Byte Federal’s “fintech focused” services, showcasing a commitment to building a full suite of financial tools for economic freedom. […]
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Court Dismisses Custodia Bank’s Challenge Against Federal Reserve
In a significant ruling, a federal judge has dismissed Custodia Bank Inc.’s claim for entitlement to a Federal Reserve master account, marking a setback for the Wyoming-based depository institution. Custodia Bank argued that the Federal Reserve Bank of Kansas City (FRBKC) was legally obliged to grant its application for a master account, a critical financial […]
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Bitcoin Falls to Sub-$63K as Market Awaits Federal Reserve’s Next Move
On Tuesday, the value of bitcoin fell to a low of ,355, experiencing a decline of over 7% against the U.S. dollar in the last 24 hours and a decrease of 12.4% in the past week. This downturn led to the liquidation of a substantial number of bitcoin long positions, with more than 0 million […]
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Group Urges US President Joe Biden to Secure Release of ‘Kidnapped’ Former Federal Agent
The Chamber of Digital Commerce, a blockchain and crypto advocacy group, has urged U.S. President Joe Biden to assist in securing the release of a Binance executive “kidnapped” by the Nigerian government. The group warned that the Nigerian government’s arbitrary detention of Tigran Gambaryan might establish a dangerous precedent. Questioning the Arbitrary Detention of Binance […]
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Federal Reserve Ends Enforcement Action Against FTX-Connected Farmington State Bank
The Federal Reserve terminated its enforcement action against Washington-based Farmington State Bank, previously known as Moonstone Bank and linked to FTX’s Alameda Research.
Federal Reserve Terminates Enforcement Action of FTX-Linked Farmington Bank
The Federal Reserve Board has officially concluded its enforcement actions against Farmington State Bank and its parent company, FBH Corporation. This termination marks the end of a scrutinized period for the Washington-based bank, once intertwined with the now-defunct cryptocurrency exchange FTX.
Farmington State Bank, previously operating under the moniker Moonstone Bank, found itself at the center of regulatory oversight following its association with FTX’s trading arm, Alameda Research. The Federal Reserve’s decision to terminate the enforcement action comes after the bank completed its wind-down plan, effectively ceasing its banking operations.
The enforcement action, initiated in July 2023, aimed to ensure the orderly wind-down of Farmington’s operations, safeguarding the interests and deposits of its customers. The Federal Reserve in the recent announcement stated:
The Board’s enforcement action…ensured the bank’s operations would wind down in a manner that protected the bank’s depositors. Farmington has completed its wind down plan and no longer functions as a bank.
This move also coincides with the termination of two long-standing enforcement actions against BNP Paribas, showing the Federal Reserve’s willingness to close regulatory chapters with institutions that have complied with mandated corrective measures.
The link between Farmington Bank and the volatile world of cryptocurrency trading came under scrutiny after it received approximately .5 million from Alameda Research through FBH Corporation in March 2022. The collapse of FTX in November 2022 prompted a re-evaluation of Farmington’s engagement in the crypto space, with the bank expressing its intent to revert to its role as a community bank.
Do you think the Federal Reserve did a good job of handling Farmington State Bank? Share your thoughts and opinions about this subject in the comments section below.
Morgan Stanley’s Chief Economist Predicts Rate Cuts ‘This Year’ as Market Eyes Federal Reserve’s Next Move
This year, mirroring last year’s speculation, market observers are keenly awaiting decisions from the U.S. Federal Reserve concerning the federal funds rate, with a particular focus on potential rate cuts this year. Ellen Zentner, Morgan Stanley’s lead economist in the U.S., predicts rate reductions in the coming months. However, she cautions that the central bank has the luxury of patience, suggesting they are in no rush to make these changes.
Market Awaits Federal Reserve’s Target Rate Decisions
All eyes are on the Federal Reserve’s next moves and currently, according to the CME Fedwatch tool, the market anticipates a projected 25 basis points increase at the upcoming Federal Open Market Committee (FOMC) session. A commanding 95.3% of market predicts an increase, whereas a mere 4.7% foresee the federal target rate maintaining its current stance. This echoes remarks made by Federal Reserve Bank of Dallas President Lorie Logan on Saturday.
Addressing attendees at the American Economic Association conference in Texas, Logan stressed the necessity for the central bank to “maintain sufficiently tight financial conditions,” warning of the danger that inflation could rebound, undermining the progress achieved thus far. The head of the Dallas branch further noted:
In light of the easing in financial conditions in recent months, we shouldn’t take the possibility of another rate increase off the table just yet.
Logan’s remarks come subsequent to the FOMC’s minutes from Dec. 14-15, 2023, underscoring the Fed members’ deliberations on restoring standard monetary policy. The committee said it examined ongoing inflation pressures and their consequences for the central bank’s asset acquisition initiatives. With inflation consistently surpassing 2% for an extended period, the Fed decided to decrease the monthly rate of net asset purchases.
Economists are expecting rate reductions in the near future, particularly following Fed Chair Jerome Powell’s dovish approach during the last FOMC meeting. Powell noted at the time that the central bank is “very focused on not making the mistake of keeping rates too high too long.” Ellen Zentner, Morgan Stanley’s chief U.S. economist, anticipates rate reductions this year, she disclosed to an audience at a three-day summit in San Antonio.
“Make no mistake, they will be cutting rates this year,” Zentner told the audience. “[However,] they can be patient and they can take their time,” she added. Meanwhile, market expectations tilt towards rate cuts and a possible hike at the end of this month. The economist from Morgan Stanley predicts the initial rate reduction will take place in June. Dante DeAntonio, senior director at Moody’s Analytics, concurs with the expectation of a June 2024 rate decrease.
“It looks increasingly likely that the Fed will be able to engineer a soft landing as they have pivoted to discussing the outlook for possible rate cuts in 2024,” DeAntonio explained in a bankrate.com survey. “The Fed will likely make the first cut in June 2024, but the pace of cuts will be quite low — leaving ‘higher for longer’ intact,” the Moody’s Analytics executive added.
What do you expect the Federal Reserve will do this year? Do you expect rate cuts in 2024? Share your thoughts and opinions about this subject in the comments section below.