Investment Education

According to Odaily, analysts from Citi Research predict that the Federal Reserve will commence significant rate cuts in the next few months, continuing until the summer of 2025. This forecast was made last week, citing new signs of economic slowdown as the reason for the anticipated action. The analysts believe that the Federal Reserve will start reducing the rates by 25 basis points at each meeting from September 2024, resulting in a total of eight rate cuts by July 2025. This would lower the benchmark interest rate by 200 basis points, bringing it down from the current 5.25%-5.5% to 3.25%-3.5%. The rate is expected to remain unchanged for the rest of 2025. This prediction comes as a response to the emerging signs of an economic slowdown, which has led to the anticipation of these rate cuts. The Federal Reserve's actions are seen as a measure to stimulate the economy and prevent further deceleration. The impact of these rate cuts on the economy and the financial markets will be closely watched by investors and analysts alike.

According to Odaily, the Fantom Foundation has emerged victorious in a lawsuit against Multichain in the Singapore High Court. The court ruled that Multichain had breached its contract and ordered it to pay $2.1 million in damages. The court pointed out that Multichain's leadership's control over crypto assets violated the user agreement. The backdrop to this case was Multichain's admission of a key breach on social media. The Fantom Foundation plans to continue pushing for Multichain's liquidation process and provide support for the recovery and distribution of affected parties' assets. The court's decision marks a significant victory for the Fantom Foundation and serves as a reminder of the importance of adhering to user agreements in the rapidly evolving world of cryptocurrency.

According to Odaily, Morgan Stanley strategist Mike Wilson has warned traders to prepare for a potential setback in the US stock market. This comes amidst increasing uncertainties surrounding the US presidential election, corporate earnings reports, and Federal Reserve policies. 'I think there's a high probability of a 10% pullback from now until some point during the US election,' Wilson stated in an interview on Monday. He also predicted that the third quarter would be rather turbulent, with companies losing their pricing power and needing to cut interest rates.Goldman Sachs' Scott Rubner echoed Wilson's sentiments on Monday, stating that if corporate performance falls short of expectations, he anticipates the stock market will endure a painful two-week period starting in August. Andrew Tyler from JPMorgan's trading department expressed a bullish outlook, but recent weak economic data has slightly dampened his confidence. Citigroup's Scott Chronert also issued a warning about a potential pullback.Despite the looming setback, Wilson is not overly concerned. Instead, he believes this could create opportunities for investors. After the S&P 500 Index achieved double-digit gains this year, he described the current valuation as 'lacklustre.' He suggested that the best way to invest in the stock market at present is through individual stocks, rather than indices.

According to PANews, Futu Securities, an internet-based brokerage, has received an upgraded license for its first class regulated activity (securities trading) from the Hong Kong Securities and Futures Commission. This allows the firm to offer virtual asset trading services to both professional and retail investors in Hong Kong.Futu launched a new 'comprehensive account' feature last Saturday (6th), which allows investors to trade investment products in multiple markets such as Hong Kong stocks, US stocks, A-shares, and Japanese stocks through a single account. The company has also announced plans to gradually introduce Singapore stocks, Australian stocks, and Canadian stocks, although no specific timeline has been disclosed.

According to Foresight News, North Carolina Governor Roy Cooper has vetoed a bill that would have prohibited the state from implementing a Central Bank Digital Currency (CBDC) issued by the Federal Reserve. In his statement, he explained that House Bill 690 was too immature, vague, and reactionary to be signed into law.Mitchell Askew, Chief Analyst at Blockware Solutions, expressed his disappointment with the governor's decision. He stated that the veto does not represent the will of the people of North Carolina, and it's unfortunate that the governor is unwilling to put partisan politics aside in favor of a law that would benefit all residents of North Carolina.

According to Odaily, Wall Street Journal reporter Nick Timiraos has suggested that the employment report for June could make the Federal Reserve meeting in July more intriguing. This is due to the possibility of the first real debate on whether to lower interest rates at the next meeting in September. This would be the first such discussion this year. The employment report's impact on the Federal Reserve's decisions could lead to significant changes in the economic landscape.

According to BlockBeats, the U.S. unemployment rate rose to 4.1% in June, marking the highest level since November 2021. This increase comes despite stronger-than-expected nonfarm payroll data, which showed a gain of 206,000 jobs in June.Economic ImplicationsThe rise in the unemployment rate to 4.1% indicates that while job creation remains robust, as evidenced by the better-than-expected nonfarm payrolls, the labor market is experiencing some underlying weaknesses. This discrepancy suggests that more people are entering the labour force or that other factors are causing a lag in employment absorption.Market ReactionsThe increase in the unemployment rate could influence the Federal Reserve’s policy decisions. While the job creation numbers are positive, the higher unemployment rate may prompt the Fed to consider measures to support the labor market. This could potentially involve adjustments to interest rate policies or other economic stimulus actions.

According to Odaily, Nick Timiraos, a spokesperson for the Federal Reserve, has expressed that due to rising inflation, officials lack sufficient confidence in cutting interest rates. During a meeting last month, some decision-makers called for close attention to signs that the employment market's fatigue might be faster than expected. The minutes from the Federal Reserve's June meeting revealed that several participants stated that monetary policy should be ready to respond to unexpected economic weakness at any time.Officials also listed several economic developments, including slowing wage growth, declining corporate pricing power, and increased consumer sensitivity to price increases, to support their expectations that inflation will continue to decrease over the next year. The minutes showed that officials were generally satisfied with their wait-and-see stance on interest rate changes and highlighted a range of views that could prompt the Federal Reserve to raise or lower interest rates. Coupled with recent public statements by Federal Reserve officials, the minutes suggest that they are unlikely to cut interest rates at a meeting later this month.

According to BlockBeats, the minutes from a recent Federal Reserve meeting held on July 4th reveal that a significant majority believe that the growth of the U.S. economy is gradually slowing down. This perspective is shared by a large number of participants in the meeting, indicating a shift in economic expectations. The minutes do not provide specific details about the reasons behind this belief, but it is clear that the majority of the meeting participants are of the opinion that the U.S. economy is not growing at the same pace as it was previously. This could potentially have significant implications for future economic policies and decisions. It is important to note that these are the views of the participants in the Federal Reserve meeting and may not necessarily reflect the overall state of the U.S. economy. Further analysis and data will be needed to confirm this trend. However, the fact that such a perspective is being shared at a Federal Reserve meeting is noteworthy and could potentially indicate a shift in economic sentiment.

According to U.Today, attorney Fred Rispoli, well-known among XRP enthusiasts, has predicted two potential dates for the resolution of the SEC's case against Ripple. This case has had a significant impact on the popular cryptocurrency. Rispoli anticipates the verdict to be delivered on the last day of July, after more than three years of legal proceedings. However, he also suggested that a more symbolic date for the verdict could be July 13.This date holds significance as it marks the anniversary of last year's ruling when Judge Torres recognized XRP as a non-security. This decision led to a 100% surge in the cryptocurrency's price within a few hours. Currently, the parties involved in the case are disputing the amount of damages. Ripple suffered a blow when sales to XRP institutions were deemed as unregistered sales of securities, and the company is now required to pay remedies.The size of the disgorgement is a major point of contention in the lawsuit. The SEC is demanding billions of dollars, while Ripple is willing to settle for no more than $10 million. Despite the ongoing legal battle, Ripple maintains a strong defense, arguing that the SEC's demands are disproportionate and lack merit.