Investment Education

According to BlockBeats, on August 23, Federal Reserve's Collins indicated that the current timing appears suitable to begin easing monetary policy.

According to Odaily, BlackRock's Chief Investment Officer Rick Rieder has called for the Federal Reserve to lower interest rates at its September meeting. Rieder believes that a rate cut is necessary to reinvigorate economic growth and alleviate consumer debt pressures. He specifically suggested that the Federal Reserve should reduce rates by 50 basis points in September.

According to Odaily, former St. Louis Federal Reserve President James Bullard recently shared his insights on several pressing topics, including the US economic outlook, the Federal Reserve's rate cut trajectory, the upcoming US presidential election, and the potential for another 'Black Monday' market crash. Bullard suggested that the Federal Reserve might implement a series of 25 basis point rate cuts at consecutive meetings, potentially totaling 75 basis points by December.

According to Odaily, the U.S. Department of Labor reported on Thursday that initial jobless claims rose by 4,000 for the week ending August 17, reaching a seasonally adjusted total of 232,000. This figure slightly exceeded the expected 230,000 claims.Chris Larkin from Morgan Stanley E*Trade commented that the latest jobless claims indicate a slowing yet resilient labor market. This trend could potentially support the Federal Reserve's decision to begin lowering interest rates in September.

According to Odaily, the number of initial unemployment claims in the United States for the week ending August 17 reached 232,000, slightly above the expected 230,000. The previous week's figure was revised from 227,000 to 228,000. Additionally, the number of continuing unemployment claims for the week ending August 10 was 1.863 million, close to the anticipated 1.867 million. The prior week's figure was adjusted from 1.864 million to 1.859 million.The four-week moving average of initial unemployment claims for the week ending August 17 was 236,000, a slight revision from the previous value of 236,500 to 236,750. These figures indicate a marginal increase in unemployment claims, reflecting ongoing adjustments in the labor market. The data provides insight into the current state of employment and economic conditions in the United States.

According to Odaily, Capital Economics economist Olivia Cross has indicated that the downward revision of employment growth data could imply an upward revision in worker productivity. This scenario would further support the Federal Reserve's decision to cut interest rates. Regardless of the situation, whether it is lower economic activity or stronger productivity growth, it suggests that the Federal Reserve has more reasons to begin easing policies in September.

According to Odaily, the Bank of Korea has decided to keep its benchmark interest rate unchanged in an effort to curb rising housing prices. This decision marks the 13th consecutive meeting where the central bank has maintained the same rate, the longest period of stability since 2008. The central bank also adjusted its forward guidance to a more moderate stance, paving the way for potential policy shifts in the coming months.Following the government's announcement, the Korean won and the yield on three-year government bonds saw slight declines. The central bank's committee has been cautious about lowering rates, fearing that any indication of a rate cut could further fuel housing price increases in Seoul and its surrounding areas. Thursday's statement leaned towards a dovish tone, as the central bank removed its previous commitment to keep rates stable for an extended period, suggesting that a rate cut may be approaching.

According to Odaily, a federal judge in California has ruled to make public the detailed disclosure statement of X Holdings, the parent company formerly known as Twitter, and X.ai, an artificial intelligence startup founded by Elon Musk in 2023. This decision will reveal the list of shareholders for both entities. In 2022, Musk acquired Twitter for $44 billion, privatized the company, and laid off approximately three-quarters of its workforce. Last year, a group of former Twitter employees sued X, seeking payment for arbitration fees arising from disputes with their former employer. Freelance journalist Jacob Silverman, with the assistance of the Reporters Committee for Freedom of the Press, intervened in the case to ensure the disclosure was made public. Despite arguments from Musk and X's lawyers that X Holdings does not disclose information about its owners or shareholders as a matter of policy and considers such information confidential, the judge was not swayed by these confidentiality claims. Reports indicate that several investors were involved when Musk acquired X Holdings, including Twitter founder and former CEO Jack Dorsey, who transferred over $1 billion worth of Twitter stock to the company, Oracle co-founder Larry Ellison, and Silicon Valley venture capital firms Andreessen Horowitz (a16z) and Sequoia Capital. However, Musk has never disclosed a complete list of investors or the company's structure. X Holdings is now required to submit the documents to the court by September 4.

According to BlockBeats, the Federal Reserve's meeting minutes released on August 22 indicate that the majority of its members believe a rate cut in September may be appropriate. The minutes reveal that the upward risks to inflation have diminished, and nearly all members expect the decline in inflation to continue. However, there is a growing concern among the members about the increasing downside risks to employment.

According to Odaily, the Federal Reserve's recently released meeting minutes indicate that several members saw a justification for a rate cut during the July meeting. This insight comes amid ongoing discussions about the direction of monetary policy and its impact on the economy.