\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 2 3 6

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 2 3 6

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 2 3 6

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 2 3 6

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 2 3 6

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

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\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

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\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

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\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

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\n

\"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Prices in the Eurozone have reportedly risen by just 1.7%, a contrast to the inflation of the past three years. This has allowed the ECB to shift its focus to economic growth. ECB President Christine Lagarde noted that the \"disinflationary process is well on track,\" signaling that the ECB is confident inflation will remain near its 2% target for the foreseeable future.<\/p>\n\n\n\n

\"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The ECB's latest decision to cut rates marks a significant shift. For the first time in 13 years, the central bank has implemented back-to-back rate cuts, indicating that the fight against inflation is no longer the only concern.<\/p>\n\n\n\n

Prices in the Eurozone have reportedly risen by just 1.7%, a contrast to the inflation of the past three years. This has allowed the ECB to shift its focus to economic growth. ECB President Christine Lagarde noted that the \"disinflationary process is well on track,\" signaling that the ECB is confident inflation will remain near its 2% target for the foreseeable future.<\/p>\n\n\n\n

\"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Europe's economic struggles have taken center stage as the European Central Bank (ECB) cut interest rates for the third time this year. Despite inflation appearing to be under control, the region's economic growth continues to disappoint, raising concerns about the future.<\/p>\n\n\n\n

The ECB's latest decision to cut rates marks a significant shift. For the first time in 13 years, the central bank has implemented back-to-back rate cuts, indicating that the fight against inflation is no longer the only concern.<\/p>\n\n\n\n

Prices in the Eurozone have reportedly risen by just 1.7%, a contrast to the inflation of the past three years. This has allowed the ECB to shift its focus to economic growth. ECB President Christine Lagarde noted that the \"disinflationary process is well on track,\" signaling that the ECB is confident inflation will remain near its 2% target for the foreseeable future.<\/p>\n\n\n\n

\"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

Economic Data And Rate Cuts<\/h2>\n\n\n\n

While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

<\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

\"Global<\/figure>\n\n\n\n

See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

U.S. Markets And Industrial Output<\/h2>\n\n\n\n

While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

Banking Industry's Pushback<\/h2>\n\n\n\n

However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

Economic Weakness And Central Bank<\/h2>\n\n\n\n

Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

\"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
  • Economic risks remain, with concerns about the impact of rising oil prices due to conflicts in the Middle East, among others.<\/li>\n<\/ul>\n\n\n\n

    Europe's economic struggles have taken center stage as the European Central Bank (ECB) cut interest rates for the third time this year. Despite inflation appearing to be under control, the region's economic growth continues to disappoint, raising concerns about the future.<\/p>\n\n\n\n

    The ECB's latest decision to cut rates marks a significant shift. For the first time in 13 years, the central bank has implemented back-to-back rate cuts, indicating that the fight against inflation is no longer the only concern.<\/p>\n\n\n\n

    Prices in the Eurozone have reportedly risen by just 1.7%, a contrast to the inflation of the past three years. This has allowed the ECB to shift its focus to economic growth. ECB President Christine Lagarde noted that the \"disinflationary process is well on track,\" signaling that the ECB is confident inflation will remain near its 2% target for the foreseeable future.<\/p>\n\n\n\n

    \"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

    However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

    Economic Data And Rate Cuts<\/h2>\n\n\n\n

    While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

    Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

    The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

    Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

    <\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

    Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

    This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

    Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

    A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

    Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

    Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

    Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

    At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

    As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

    The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

    The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

    Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

    The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

    \"Global<\/figure>\n\n\n\n

    See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

    U.S. Markets And Industrial Output<\/h2>\n\n\n\n

    While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

    Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

    As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

    Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

    In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

    The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

    This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

    The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

    In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

    It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

    The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

    Banking Industry's Pushback<\/h2>\n\n\n\n

    However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

    While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

    As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

    However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

    As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

    The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

    President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

    Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

    One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

    Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

    In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

    North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

    North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

    Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

    Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

    Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

    Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

    Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

    Economic Weakness And Central Bank<\/h2>\n\n\n\n

    Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

    \"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

    The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

    This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

    With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

    Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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    \n
  • ECB President Christine Lagarde expressed confidence that inflation will stay near the 2% target.<\/li>\n\n\n\n
  • Economic risks remain, with concerns about the impact of rising oil prices due to conflicts in the Middle East, among others.<\/li>\n<\/ul>\n\n\n\n

    Europe's economic struggles have taken center stage as the European Central Bank (ECB) cut interest rates for the third time this year. Despite inflation appearing to be under control, the region's economic growth continues to disappoint, raising concerns about the future.<\/p>\n\n\n\n

    The ECB's latest decision to cut rates marks a significant shift. For the first time in 13 years, the central bank has implemented back-to-back rate cuts, indicating that the fight against inflation is no longer the only concern.<\/p>\n\n\n\n

    Prices in the Eurozone have reportedly risen by just 1.7%, a contrast to the inflation of the past three years. This has allowed the ECB to shift its focus to economic growth. ECB President Christine Lagarde noted that the \"disinflationary process is well on track,\" signaling that the ECB is confident inflation will remain near its 2% target for the foreseeable future.<\/p>\n\n\n\n

    \"Accordingly, the interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will be decreased to 3.25%, 3.40%, and 3.65%, respectively, with effect from 23 October 2024,\" <\/em>ECB announced<\/a> on Thursday.<\/p>\n\n\n\n

    However, Lagarde warned of looming economic risks, including the possibility of new trade tariffs from a potential Trump presidency in the U.S. and the impact of oil prices due to conflicts in the Middle East.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>President Of European Central Bank Believes Crypto Is 'Worth Nothing'<\/a><\/p>\n\n\n\n

    Economic Data And Rate Cuts<\/h2>\n\n\n\n

    While the ECB has not officially committed to further rate cuts, sources suggest that another reduction in December is possible if the economic data does not improve, Reuters<\/em> reported<\/a>.<\/p>\n\n\n\n

    Markets are already pricing in the likelihood of additional cuts through early 2025, intending to bring rates back to a \"neutral\" level of around 2%. While inflation has cooled, the economic toll is becoming more evident. High interest rates have stunted investment, and the latest economic data points to more sluggish growth ahead. Industrial output has slowed, and bank lending remains tepid.<\/p>\n\n\n\n

    The ECB's Governing Council committed to bringing inflation down to its 2% target over the medium term. Thursday's 25-basis-point cut lowered the deposit rate to 3.25%, with further cuts anticipated if inflation continues to trend downward and growth remains weak.<\/p>\n\n\n\n

    Despite the recent rate cuts, Lagarde maintains that a recession is not expected and that the economy could still achieve a \"soft landing,\" meaning that growth will slow but remain positive. She emphasized that its approach will be data-dependent and that it will make decisions on a meeting-by-meeting basis.<\/p>\n\n\n\n

    <\/p>\n","post_title":"European Central Bank Cuts Rates Again, Eyes Growth As Inflation Slows","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-central-bank-cuts-rates-again-eyes-growth-as-inflation-slows","to_ping":"","pinged":"","post_modified":"2024-10-21 00:57:36","post_modified_gmt":"2024-10-20 13:57:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=19212","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18922,"post_author":"18","post_date":"2024-10-02 20:08:51","post_date_gmt":"2024-10-02 10:08:51","post_content":"\n

    Martin Schlegel steps into the leadership of the Swiss National Bank (SNB) this week, taking over the reins from long-time chief Thomas Jordan. Schlegel\u2019s appointment comes at a critical moment, as the nation continues to reckon with the collapse of Credit Suisse and its subsequent takeover by UBS, the country\u2019s largest bank.<\/p>\n\n\n\n

    This transition coincides with a parliamentary inquiry soon to be published, which is expected to scrutinize the Swiss authorities' role in handling the demise of the 167-year-old financial institution. The investigation could cast a harsh light on the SNB\u2019s response to the crisis, leaving questions about the future of banking oversight in Switzerland. According to reports from Reuters, many believe the SNB<\/a>, along with the Swiss financial market regulator FINMA and the finance ministry, was too slow in reacting, potentially exacerbating the situation.<\/p>\n\n\n\n

    Schlegel, who has worked closely with Jordan throughout his career, particularly during the Credit Suisse crisis, inherits a delicate situation. He was part of the team that orchestrated emergency liquidity injections, first to stabilize Credit Suisse and later to facilitate its merger with UBS in March 2023. While some praise the SNB\u2019s efforts to avert a larger global financial crisis, others suggest that the central bank's response was insufficient, leaving a bitter aftertaste for many Swiss economists and business leaders.<\/p>\n\n\n\n

    A notable report published in late 2023 by a former Bank of England Deputy Governor, Paul Tucker, argued that the Swiss authorities were ill-prepared for Credit Suisse\u2019s downfall. Despite these criticisms, the SNB has remained firm in its stance, defending its actions, including the decision not to nationalize the bank, a measure some had called for during the turbulent months leading up to the merger.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Switzerland's Central Bank Pilots Tokenization To Modernize Finance<\/a><\/p>\n\n\n\n

    Schlegel's Leadership And SNB Policies <\/h2>\n\n\n\n

    Schlegel's appointment has sparked discussions about whether his leadership will bring substantial changes to the SNB\u2019s policies or if continuity with Jordan\u2019s tenure is more likely. Known for his pragmatic approach, Schlegel has indicated that price stability will remain a top priority under his leadership. His former colleagues and analysts expect little divergence from the SNB\u2019s current path, especially in the short term.<\/p>\n\n\n\n

    Schlegel has emphasized that the SNB is already working closely with the government and FINMA to develop stronger regulations, particularly for UBS, which now controls a significant portion of Switzerland's banking market following the merger. The introduction of tougher capital requirements is anticipated, but Schlegel is clear that the central bank will focus on measures that balance stability with operational flexibility.<\/p>\n\n\n\n

    At the same time, Schlegel is tasked with maintaining the SNB\u2019s robust track record on monetary policy. With inflation under control at 1.1%, the new chairman is expected to continue the successful efforts of his predecessor in this area. However, his unconventional personal style\u2014Schlegel is known for his love of bass guitar and the kalimba, a traditional Zimbabwean instrument\u2014may set him apart from Jordan, who had a more traditional, restrained public image.<\/p>\n\n\n\n

    As the Swiss financial sector navigates this transition, the broader implications for the global banking system are profound. Schlegel's ability to steer the SNB through this period of heightened scrutiny could define the future of Switzerland's banking oversight. If the parliamentary investigation reveals significant failings, it may prompt calls for reform, not only within the SNB but also across the regulatory landscape.<\/p>\n\n\n\n

    The story of Credit Suisse\u2019s fall has left deep scars on Switzerland\u2019s financial reputation. Schlegel\u2019s challenge will be to restore confidence, both at home and abroad, as well as to ensure that the country\u2019s largest banks are better equipped to handle future crises.<\/p>\n","post_title":"Can Switzerland\u2019s New Central Bank Chief Restore Faith In Its Banking System?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"can-switzerlands-new-central-bank-chief-restore-faith-in-its-banking-system","to_ping":"","pinged":"","post_modified":"2024-10-02 20:08:58","post_modified_gmt":"2024-10-02 10:08:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18922","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18715,"post_author":"18","post_date":"2024-09-19 03:55:53","post_date_gmt":"2024-09-18 17:55:53","post_content":"\n

    The Federal Reserve<\/a> is gearing up for a potentially significant rate cut this week, marking the end of a 30-month tightening cycle aimed at curbing post-pandemic inflation. This move comes against a backdrop of weakening Chinese economic data and heightened political tensions in the U.S., setting the stage for a week of high-stakes financial maneuvering.<\/p>\n\n\n\n

    Investors are laser-focused on the possibility of a more aggressive 50 basis point cut, rather than the previously expected 25 basis points. As reported by Reuters, this shift in expectations has been fueled by recent press reports, despite Fed officials maintaining their traditional pre-meeting silence. The anticipation is palpable in the markets, with Wall Street benchmarks hovering within 1% of record highs and Fed futures pricing in a 60% chance of a 50 basis point cut. Short-term Treasury yields have retreated to 2022 levels, while the dollar index is approaching year-lows.<\/p>\n\n\n\n

    The potential Fed easing is having far-reaching effects across global markets. The yen has strengthened past 140 per dollar, a level not seen since July 2022, while MSCI's emerging market currency index hit a record high. In the bond market, the 2-to-10-year yield curve gap is at its most positive since June 2022, reflecting shifting expectations about future economic conditions.<\/p>\n\n\n\n

    \"Global<\/figure>\n\n\n\n

    See Related:<\/em><\/strong> Riddle&amp; Code ignites the fourth industrial revolution by easily onboarding any machine onto Web3<\/a><\/p>\n\n\n\n

    U.S. Markets And Industrial Output<\/h2>\n\n\n\n

    While U.S. markets brace for easing, China grapples with economic headwinds. Industrial output growth slowed to a five-month low in August, while retail sales and new home prices missed forecasts.<\/p>\n\n\n\n

    Perhaps most alarmingly, new home prices fell at the fastest pace in over nine years, underscoring the ongoing property market crisis. These indicators highlight the growing need for substantial government stimulus, which has been notably absent thus far.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Adding to the complex economic landscape, the FBI reported a second failed assassination attempt on Republican presidential candidate Donald Trump. This development comes as Trump trails Democratic candidate Kamala Harris in betting markets following their recent TV debate, further complicating the political and economic outlook.<\/p>\n\n\n\n

    As the Fed prepares to move, market watchers are keenly awaiting the ripple effects across global economies. The interplay between monetary policy, geopolitical events, and economic indicators will likely shape market trajectories in the coming months. The Fed's decision this week could set the tone for global monetary policy, potentially influencing central bank decisions worldwide. Moreover, China's economic challenges present a wildcard that could significantly impact global growth prospects.<\/p>\n\n\n\n

    Investors and policymakers alike will be closely monitoring how these interconnected factors unfold, potentially reshaping the global economic landscape in the latter half of 2024 and beyond. The coming weeks may prove crucial in determining whether the Fed's anticipated rate cut can stimulate growth without reigniting inflationary pressures, all while navigating the complex terrain of international economic relations and domestic political uncertainties.<\/p>\n","post_title":"Fed Poised For Rate Cut Amid Global Economic Shifts","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"fed-poised-for-rate-cut-amid-global-economic-shifts","to_ping":"","pinged":"","post_modified":"2024-09-19 03:56:00","post_modified_gmt":"2024-09-18 17:56:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18715","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":18595,"post_author":"18","post_date":"2024-09-14 00:40:20","post_date_gmt":"2024-09-13 14:40:20","post_content":"\n

    In a move that could significantly reshape the landscape of American banking, U.S. regulators are poised to unveil sweeping changes to proposed bank capital rules. According to a report by Reuters, citing Bloomberg News, the Federal Reserve<\/a> and other regulatory bodies are set to release a revised proposal as soon as September 19th, potentially easing some of the stringent requirements initially put forth.<\/p>\n\n\n\n

    The revised proposal, which could stretch to 450 pages, is expected to introduce key modifications to rules centered on operational risk provisions. As reported by Bloomberg, one of the most notable changes is a potential reduction in the capital that banks must allocate against certain business lines, including wealth-management services and specific credit-card operations.<\/p>\n\n\n\n

    This development comes as welcome news to the banking sector, which has been vocal in its opposition to the original \"Basel III Endgame\" proposal. The initial plan, which aimed to increase capital requirements for larger banks, faced fierce resistance from financial institutions arguing that it could hamper their ability to lend and compete globally.<\/p>\n\n\n\n

    The revisions don't stop there. The report suggests that the new proposal would also lower the market-risk requirement for the nation's largest lenders. Furthermore, these banking giants may not face as strict requirements around mortgages or tax-equity exposures as initially proposed.<\/p>\n\n\n\n

    In a move that signals the significance of these changes, Fed Vice Chair Michael Barr is scheduled to preview the regulators' revised proposal next Tuesday at the Hutchins Center on Fiscal & Monetary Policy. This presentation will shed light on the next steps in this crucial regulatory process.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Have Goldman Sachs Analysts Become Overly Optimistic By Revising Their Year-End S&P 500 Index Target Upwards?<\/a><\/p>\n\n\n\n

    It's worth noting that the Basel III rules have their roots in the aftermath of the 2007-2009 global financial crisis. The crisis, which forced taxpayers to bail out several undercapitalized banks, prompted regulators to implement more robust capital requirements to prevent a similar scenario in the future.<\/p>\n\n\n\n

    The journey to this point has been long and complex. In July 2023, the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, published for comment proposed changes to bank capital rules. These rules were expected to overhaul how larger banks gauge risk and determine appropriate capital holdings.<\/p>\n\n\n\n

    Banking Industry's Pushback<\/h2>\n\n\n\n

    However, the banking industry's pushback against the original proposal has been significant. Financial institutions have been calling for a re-proposal, arguing that the initial plan could hinder their operations and competitiveness. In response, regulators have spent months revising the plan, aiming to strike a balance between ensuring financial stability and maintaining a competitive banking sector.<\/p>\n\n\n\n

    While the Fed has declined to comment on the Bloomberg report, and the FDIC and the Office of the Comptroller of the Currency have yet to respond to requests for comment, the anticipation in the financial sector is palpable.<\/p>\n\n\n\n

    As we look ahead, these proposed revisions could mark a turning point in the ongoing debate over bank regulation in the United States. If implemented, they could potentially alleviate some of the pressure on larger financial institutions while still maintaining robust safeguards against systemic risk.<\/p>\n\n\n\n

    However, questions remain about the long-term implications of these changes. Will they strike the right balance between financial stability and economic growth? How will they impact the competitiveness of U.S. banks on the global stage? And perhaps most importantly, will they provide sufficient protection against future financial crises?<\/p>\n\n\n\n

    As the September 19th date approaches, all eyes will be on U.S. regulators. Their decisions in the coming weeks could shape the future of American banking for years to come, influencing everything from lending practices to investment strategies. For investors, policymakers, and everyday Americans alike, the stakes couldn't be higher.<\/p>\n","post_title":"US Regulators Set To Unveil Major Changes To Bank Capital Rules","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"us-regulators-set-to-unveil-major-changes-to-bank-capital-rules","to_ping":"","pinged":"","post_modified":"2024-09-14 00:40:27","post_modified_gmt":"2024-09-13 14:40:27","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18595","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17736,"post_author":"15","post_date":"2024-07-09 21:59:22","post_date_gmt":"2024-07-09 11:59:22","post_content":"\n

    The President of the Central Bank of the Republic of China shared <\/a>that developing a central bank digital currency (CBDC) is not a race. Instead, the central bank should prioritize steady progress over speed.<\/p>\n\n\n\n

    President Yang Jinlong highlighted that being the first to launch a CBDC does not guarantee success, as countries that have already issued or tested CBDCs have not achieved the expected outcomes.<\/p>\n\n\n\n

    Yang stated that the central bank is experimenting with three scenarios to boost domestic payment efficiency and innovation. There is no set timeline for issuing a CBDC but efforts to enhance and innovativate are ongoing.<\/p>\n\n\n\n

    One notable development is the CBDC prototype platform designed for retail payments. Yang mentioned that this platform could handle the cash flow operation of digital coupons, with transaction speeds reaching 20,000 transactions per second.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>The FTX Bankruptcy Crisis: Solana Volatility Is Back But Remains Under Loads Of Doubts Over Its Long-Term Future<\/a><\/p>\n\n\n\n

    Yang reiterated that Taiwan\u2019s cautious approach to issuing a CBDC is meant to meet public digital payment needs and align with government digital policy goals, ensuring significant benefits.<\/p>\n\n\n\n

    In March, the Financial Supervisory Commission announced plans to propose new digital asset regulations for Taiwan by September 2024, aiming to create more effective regulations for digital asset markets and ensure investor safety.<\/p>\n\n\n\n

    North Carolina Vetoed The CBDC Ban Bill<\/h2>\n\n\n\n

    North Carolina Governor Roy Cooper has rejected <\/a>a bill banning the state from using a US Federal Reserve-issued CBDC. The bill had strong support from the state\u2019s House of Representatives and Senate with a vote of 109-4 and 39-5 respectively.<\/p>\n\n\n\n

    Governor Cooper is criticized for deciding without putting \u201cpartisan politics aside\u201d. The bill is said to benefit all North Carolina residents, but the Governor believes that the bill was too \u201cpremature, vague, and reactionary\u201d to be signed into law.<\/p>\n\n\n\n

    Since the vote was more than three-fifths majority in both chambers, the North Carolina legislators could override Governor Cooper's veto. <\/p>\n","post_title":"Taiwan's Central Bank Focuses On Slow And Steady Development Of CBDC","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"taiwans-central-bank-focuses-on-slow-and-steady-development-of-cbdc","to_ping":"","pinged":"","post_modified":"2024-07-09 21:59:28","post_modified_gmt":"2024-07-09 11:59:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17736","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17676,"post_author":"14","post_date":"2024-07-04 20:33:10","post_date_gmt":"2024-07-04 10:33:10","post_content":"\n

    Wall Street's main stock indexes rose on Tuesday, driven by gains in Tesla shares and mega-cap growth stocks. However, trading volumes were thin ahead of the July Fourth holiday and the highly anticipated release of June nonfarm payrolls on Friday.<\/p>\n\n\n\n

    Shares of Tesla surged 8.8% to their highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, pushing the consumer discretionary sector to the top of the S&P 500 sector indexes.<\/p>\n\n\n\n

    Positive information is that the U.S. Federal Reserve Chairman Jerome Powell said this Tuesday that recent economic data represented \"significant progress.\" However, he warned that the Fed needed to see more before changing its monetary policy.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>Dogecoin To Be Accepted As Payment At Tesla Superchargers<\/a><\/p>\n\n\n\n

    Economic Weakness And Central Bank<\/h2>\n\n\n\n

    Meanwhile, Chicago Fed President Austan Goolsbee said that he sees some signs of economic weakness and that the central bank's goal is to get inflation down without stressing the labor market. However, Genter Capital Management CEO Dan Genter said<\/a>:<\/p>\n\n\n\n

    \"What the Fed really wants to see is a further click up in unemployment and then a slowdown with regards to new job creation. The recent moderation in inflation should be a green light for the Fed to start considering rate cuts.\"<\/em><\/p>\n\n\n\n

    The Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings in May, following significant declines over the previous two months. However, layoffs also rose amid a slowdown in economic activity.<\/p>\n\n\n\n

    This data marks the beginning of this week's series of U.S. jobs reports, culminating in the highly anticipated release of June nonfarm payrolls on Friday. These reports will be crucial for investors in determining whether the U.S. labor market remains robust despite the high interest rates.<\/p>\n\n\n\n

    With recent data indicating a renewed moderation in inflation and some signs of economic weakness, market participants are maintaining their expectations of approximately two interest rate cuts by year-end. According to LSEG's FedWatch data, there is a 69% probability of easing beginning in September.<\/p>\n\n\n\n

    Investors are currently divided over the sustainability of the market rally in which the S&P 500 index has risen 14.75% in the first half of the year but according to Barry Bannister, chief U.S. equity strategist at Stifel, the S&P 500 could correct to 4,750 points by the end of third quarter.<\/p>\n","post_title":"Tesla Gains Boosted Wall Street's Main Stock Indexes. Interest Rates Outlook And Job Report Remain In Focus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"tesla-gains-boosted-wall-streets-main-stock-indexes-interest-rates-outlook-and-job-report-remain-in-focus","to_ping":"","pinged":"","post_modified":"2024-07-04 20:33:13","post_modified_gmt":"2024-07-04 10:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17676","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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