The Fed can't cut rates as inflation is moving higher, says Moody's Mark Zandi
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Yahoo
4 hours ago
- Yahoo
Jamie Dimon just gave a thumbs up to stablecoins—but still won't say anything nice about Bitcoin
The CEO of JPMorgan Chase gave a shout out on Wednesday to stablecoins, one of the buzziest sectors in the crypto. 'I'm a believer in stablecoins, believer in blockchain, not personally, a believer in Bitcoin itself,' Jamie Dimon said in an interview with CNBC. He added that his bank 'will have' a stablecoin, or cryptocurrency pegged to underlying assets like the U.S. dollar. 'There are things that stablecoins maybe can do that your traditional cash can't,' Dimon said, adding later: 'It's what the customer wants. It's not what JPMorgan personally wants.' Dimon has long drawn a distinction between the technology of blockchain, or decentralized ledgers, and Bitcoin, the world's largest cryptocurrency. His Wednesday comments with CNBC are in line with his prior thinking, but his disavowal of Bitcoin was softer than his previous takedowns. In 2017, he said that he would fire JPMorgan Chase employees who were trading Bitcoin because it was evidence that they were 'stupid.' In 2023, he said Bitcoin was 'hyped-up fraud,' compared the token to a 'pet rock,' and said that cryptocurrencies are a 'waste of time.' Still, he conceded that blockchains were useful. 'Blockchain is a technology ledger system that we use to move information. We've used it to do overnight repo, intraday repo, we've used it to move money, right? So that's a technology ledger that we think will be deployable,' he said. Dimon heads the largest bank in the U.S and his comments on stablecoins add further legitimacy to the fast-growing crypto industry, especially after the landmark passage of GENIUS Act in Congress, a bill that regulates stablecoins. JPMorgan Chase has long had its own blockchain division. The team, originally called Onyx, has rebranded to Kinexys and has started to expand beyond the bank's 'walled garden,' an industry term for blockchains that are private. In May, the bank settled its first transaction on a public blockchain. And, in June, Kinexys announced that it was piloting what it called JPMD, a stablecoin-like asset known as a tokenized deposit. The token will represent a dollar of deposits into JPMorgan Chase. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
PCE data comes in hot: What rising inflation means for the Fed
Core Personal Consumption Expenditures (PCE) data — the Federal Reserve's preferred inflation gauge — showed an increase of 2.8% on a yearly basis in June. Yahoo Finance Senior Reporter Jennifer Schonberger joins Morning Brief with Julie Hyman to break down the data and discuss what it could mean for the Fed going forward. To watch more expert insights and analysis on the latest market action, check out more Morning Brief. Lest we forget, guys, in all of the tech excitement, we had some pretty significant economic data this morning on the back of the Fed meeting yesterday. Jen, I want to come to you on that. Inflation accelerating a little bit in June. Yeah, inflation not moving in the right direction here for the Fed, Julie, clocking in at 2.8% when we look at that core number, which excludes volatile food and energy prices. And this is the personal consumption expenditures index. This is the most favored inflation gauge for the Federal Reserve. Again, that clocking in at 2.8% on that year-over-year number versus expectations for 2.7% and what Chair Powell had also expected. He said yesterday he expects it to clock in at 2.7. So this came in above what the Fed expected, and digging into those numbers a bit to see if it's being driven by the good side, which would imply perhaps a pass-through on tariffs versus services, we are seeing the good side of the inflation equation in this report perk up a bit from the previous month. Again, this was for June, so the end of the second quarter, and if we've looked at PCE from overall GDP, it was 2.5%. This this report just one month of that three-month block. So there could be some irregularities in the data, or some ups and downs, if you will. Nevertheless, just not looking good for the Fed here, and it goes to Fed Chair Powell's point that it's still early right now for the Fed to determine what the impact of President Trump's tariffs are on inflation, that he wants to see more data as we go through the summer months. Again, this is just June right here, but certainly not moving in the right direction for rate cuts. And so, Jen, how should we be thinking about after what we heard from the Fed chair yesterday? How should we be thinking about what to pay the most attention to going into September or is the idea that even in September, we are not going to be seeing the full effect of tariffs? Well, that is a $64 million question, right, Julie? And so many reporters did try to press the Fed chair on that yesterday, and he did not open the door to a rate cut for September, saying that we need to look at the data and we're going to get a, you know, a couple more inflation reports, couple more employment reports. Right now, it seems like the Fed is looking at both sides of the equation. They do think that the labor market remains solid right now. Fed Governor Waller, who did dissent because he is worried about private sector job growth stalling, that is not something that Chair Powell seemed to mention he's worried about at this point. Um, so he seems to be looking more towards the inflation side of the equation. This certainly doesn't help the case for September. We'll see how the rest of the numbers come in. I did think it was interesting that he said during the press conference yesterday, look, you could say that we're actually looking through the goods inflation right now because we're not hiking. It was a bit of a shot across the bow perhaps to the president who is out again hammering the Fed for not lowering rates yesterday. Related Videos Fed Governor Adriana Kugler to resign Dow falls more than 500 points on jobs report, tariffs SEC chair talks tokenization & how securities should be defined Crypto regulation: SEC Chair Atkins previews the agency's efforts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
6 hours ago
- CNBC
Frothy financing threatens retail investors in crypto treasuries, warns Sol Strategies CEO Leah Wald
CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry.
