The Stock Market Is Surging to Record Highs & the Fed Will Do Anything to Keep It There
- The Fed hasn’t ruled out negative interest rates.
- If it wants the stock market rally to continue, the central bank will probably have to resort to below-zero rates.
- Without more Fed action, the U.S. economy probably can’t pull off a V-shaped recovery.
The U.S. stock market is trading remarkably close to all-time highs. Investors have remained bullish on the nation’s long-term prospects despite worrying economic data.
Much of that optimism has been fueled by the Federal Reserve, whose ever-expanding balance sheet has provided a formidable backstop for financial markets.
The stock market’s pandemic recovery has been impressive. | Source: Yahoo Finance
Although the stock market’s epic recovery suggests the U.S. is heading for a V-shaped recovery, the central bank is preparing for a worst-case scenario.
Fed Economist Argues for Negative Rates
Yi Wen, an economist for the St. Louis Fed, says despite Jerome Powell’s reluctance, the bank will have to consider negative interest rates.
style=”display:block; text-align:center;” data-ad-layout=”in-article” data-ad-format=”fluid” data-ad-client=”ca-pub-4791668236379065″ data-ad-slot=”8840547438″>,
If reproduced, please indicate the source: https://www.uucj.net/the-stock-market-is-surging-to-record-highs-the-fed-will-do-anything-to-keep-it-there/
Recommendation
-
Ramping Global Demand for Stablecoins Pushes International Regulators to Stay on the Lookout
Apr 16, 2020 at 12:15 // News Stablecoins climb up in market cap value, while cryptocurrencies still fail to recover from the post-pandemic knockout. This wasn’t left unnoticed by the world governments, and notably, G20, who already sought ways how to cope with a growing demand for stablecoins. In the times of COVID-19, stablecoins gained in market cap due to their stability. Besides, increased digitization drives banks forward to release stablecoins of their own. All of that was not overlooked by the Financial Stability Board, which came up with first recommendations on stablecoin handling. The dawn of stablecoins Stablecoins are placed on the edge of two worlds. Being close to cryptocurrency by nature of decentralization, their value is nevertheless pegged to fiat currencies which makes them a more reliable and stable means of payment. As coinidol.com, the world blockchain news outlet reported, many central banks are developing or even issuing their own digital currencies. Stablecoins also share popularity among traders. In between trade signals, market participants are converting their desired cryptocurrency into stablecoins and back. Stablecoins serve as a “safe…
-
Dubai, Emirates NBD Sign MoU on Blockchain Trade Finance Solutions
The Dubai Chamber of Commerce and Industry (DCCI) has signed a memorandum of understanding (MoU) with Emirates NBD. Middle Eastern news daily Saudi Gazette reported on Oct. 14 that the DCCI, which acts as an international business hub in Dubai, has signed an MoU with Dubai government-owned bank, Emirates NBD. The bank, which is one of the largest banking groups in the Middle East in terms of assets, will provide trade finance solutions for the Digital Silk Road, a Dubai 10X initiative, which uses blockchain technology to digitize trade processes in Dubai. Dubai 10X is a program wherein various departments of government are tasked with researching and applying new and disruptive technologies to their administration and operations. Hamad Buamim, president and CEO of DCCI, reportedly said that the agreement with Emirates NBD is a major step forward for the initiative, adding: “Trade finance remains one of the most important tools used today to facilitate international trade and commerce as it simplifies transactions for importers and exporters.” The DCCI had signed an MoU at the beginning of July with the International…
-
Hold Tight, Here Come the Blockchain Wars
Secondly, the natural instinct of this slightly-less-dumb capital is to pick projects with defendable moats. Monopolies make great returns for their backers. Duopolies are okay too. But an active market saturated with great teams doing awesome things is just not worth the bother. Large and vaguely strategic investors act as catalysts, unfairly popularising their own bets, sometimes against better alternatives. In other words, it’s winner-take-all. This makes the industry-wide “open-source” collaboration and technology sharing, which has characterized blockchain innovation so far, that much less likely to continue. Consider that Silicon Valley startups are not well known for giving away the engineering secrets to their core products. Sure, Apple “open-sourced” Darwin, but it kept the real jewels of OSX for itself. Ditto Facebook. Ditto Google. Companies share what makes strategic sense to share, but that rarely means sharing the really cool stuff. The game becomes increasingly zero-sum. This is already happening to some degree in our space with numerous well-funded and research-heavy startups like StarkWare and Dfinity refusing to open up the important bits of their technology. Some are even apparently…
-
Bitcoin Needs to Break Above This Price Level To Spark a Massive Rally
Bitcoin’s uptrend in the time since it tapped lows of $6,400 has been unwavering, and BTC’s bulls have been able to successfully garner enough buying pressure to push the cryptocurrency up towards its key resistance levels that exist within the upper-$7,000 region. It is important to note that BTC is currently on the cusp of validating an overwhelmingly bullish technical formation, but in order for this to spark a massive rally, bulls need to push the crypto above one key level. Bitcoin Inches Towards $7,600 as Bulls Continue Building Strength At the time of writing, Bitcoin is trading up roughly 1% at its current price of $7,600, which marks a notable climb from its daily lows of under $7,400 that were set yesterday morning when bears attempted to garner enough selling pressure to halt the ongoing rally. It is imperative to note that the short-term downtrend that ensued after BTC faced an influx of selling pressure yesterday was short-lived and was ultimately followed by a strong bounce that marked a continuation of its uptrend. The price region that Bitcoin is…
-
New York City Will Welcome Your Cash With Open Arms » The Merkle Hash
Running a physical business is always a complex undertaking. Especially in New York City, now that cashless payments have been banned completely. This news is rather surprising, as it has seemingly come out of the blue. Cash Remains King in New York City A legislative proposal to for businesses to accept cash was introduced a while ago. No one really expected it to pass the City Council’s vote, however. Last Thursday, the NYC City Council suddenly decided to approve this proposal. It is evident that the use of cash will not go away anytime soon. This is despite both governments and central banks pushing hard to achieve the completely opposite effect. Cashless businesses are plentiful in New York City. However, for various restaurants and other retailers, not being able to accept cash has become a hindrance. Statistics indicate that 25% of NYC residents still pay in cash. This is either due to a lack of banking services, or not being part of the financial ecosystem at all. Leaving those individuals to fend for themselves is not something the city should…
-
Bitcoin, Ether, and XRP Weekly Market Update February 17, 2020
The total crypto market cap lost $7 billion of its value for the last seven days and now stands at $280.8 billion. The top 10 currencies are mostly in red for the same time frame with Bitcoin SV (BSV) and EOS (EOS) leading the pack with 21.3 and 16.8 percent of losses respectively. By the time of writing bitcoin (BTC) is trading at $9,795 while ether (ETH) moved up to $252. Ripple’s XRP is trading at $0.282. BTC/USD Bitcoin finally broke the psychological level of $10,000 on Sunday, February 9 and closed the seven-day period at $10,177, with 9.3 percent of increase. On Monday, February 10, the most popular cryptocurrency started the new trading period by falling down to $9,843. The 3.2 percent correction was seen by the majority of the analysts as a healthy retrace in an already overheated bull run. A proper consolidation was required for BTC and it found it in the middle of the uptrend channel. The second day of the workweek brought green back to the chart as the BTC/USD pair regained its positions and…
-
Will Bitcoin Halving Call for Short-term Bears? Hashrate Back to 100 Eh/s |
During the ‘Black Thursday’ crash in Bitcoin, the price dropped by 50% effectively replicating post halving rewards. The fear of a pullback to the lows again saw considerable capitulation among miners. The lows in the Hash rate was 81 EH/s. While recovery in hash rate was seen in April, the total hash rate is back in the 90-120 EH/s again. Moreover, a return back to Nov-Dec 19 levels (around 80-100 EH/s) is also likely. Bitcoin Total Hashrate (Source) Hashrate Follows Price Bitcoin hash-ribbons (30 and 60 day average) signaled a buy signal as the capitulation leading to accumulation lead the break-out in the last week of April. However, with halving due in the next 11 days, miners might be looking at $9000 as a good place to buy Bitcoin shorts or put options. Moreover, capitulation is likely to ensue again after halving. Due to the reduction in reward by 50%, older generation of S9 miners are likely to phase out post halving. Bitcoin Hash Ribbons (TradingView) As reported earlier on Coingape, the rainy season in China brings abundance of cheap hydroelectric…
-
The Nuances of OKEx Linear and Inverse Futures/Swap and How to Maximize Your Profit
This article is targeted to the intermediate and sophisticated traders who are already familiar with the basics of index arbitrage. There are other resources available on OKEx Academy if you need more explanations on the concepts of basis, margining and fair value calculation. Today, we’re going to discuss a trade that would have returned >10% last month. The idea is very similar to the borrow and carry trade discussed here. For ease of discussion, we assume that we build an index arbitrage position on February 12 and then unwind it on March 13 at the most favorable time. However, the meat of the discussion arises from the discussion of how to maximize return on capital and lower risk by using both OKEx’s inverse and linear futures. Twitter Facebook reddit Pinterest Hacker News LinkedIn Tumblr Google+ VKontakte The Vanilla Trading Idea The graphs below show the percentage basis on Feb 12 and Mar 13, 2020. Each graph includes the percent basis of both OKEx inverse coin-margined USD futures and linear USDT-margined futures. On a quick glance, we can see how linear…
-
Coronavirus Fraud Pertaining to Bitcoin is on the Rise in the UK » The Merkle News
No one will be surprised to learn how the number of cryptocurrency scams is still on the rise. Especially fake projects pertaining to the coronavirus are popping up globally. Every incident in the world will bring out criminals looking for a quick buck. Coronavirus Scammers Want Your Bitcoin The current coronavirus crisis is no exception by any means. It would appear that ample criminals are looking for ways to make money during this incident. Various counties in the UK have seen a major increase in cryptocurrency extortion scams. That in itself is interesting, but it gets worse. Most of these scams try to play on people’s fear of the novel coronavirus. So far, criminals have shown a favoritism toward phishing attempts by impersonating WHO and CDC officials. Every single time, the objective is to obtain a certain amount of Bitcoin. In fact, in exchange for Bitcoin, victims can obtain names of people in their area testing positive for the coronavirus. Why anyone would want that information, is a bit unclear. Another example is how users receive malware by clicking on…
-
Australia Getting Ready For A Blockchain Technology Integral Plan
Australia is working on an integral blockchain technology plan that would allow it to get at the forefront of the race to offer a better legislation on the matter. In a blockchain roadmap, the government explains that it wants to revolutionize the country’s blockchain industry. Moreover, they also shared which are the most important opportunities in the space and how several industries can be improved by implementing distributed ledger technology (DLT). Australia Releases Blockchain Technology Plan According to the national blockchain roadmap, this industry is expected to move over $175 billion in 5 years. Moreover, the numbers grow massively if we move towards 2030 and how blockchain could be a market of $3 billion. On the matter, the report explained: “Blockchain technology is predicted to generate an annual business value of over US$175 billion by 2025 and in excess of US$3 trillion by 2030. The Australian Government is proactively addressing challenges and leveraging opportunities across a range of sectors to make this a reality.” This is not the first time that the government of Australia presents a blockchain roadmap and…
