Fed's Kashkari says U.S. central bank should use forward guidance now: FT

(Reuters) - The U.S. Federal Reserve should use forward guidance now as the global economy is slowing down, the yield curve has inverted and investment in U.S. businesses has stalled, Minneapolis Federal Reserve Bank President Neel Kashkari wrote in an op-ed for the Financial Times.

“Absent some surprise reversal in these economic developments, I will argue that we should not only cut the federal funds rate, but that we should also use forward guidance to provide even more of a boost to the economy than a rate cut alone can deliver”, Kashkari wrote on Wednesday.

Kashkari does not have a vote on monetary policy this year but participates in policy discussions at the U.S. central bank.

https://uk.reuters.com/article/us-usa-f ... KKCN1VB144


Full Story @ https://www.ft.com/content/ce9dac68-c27 ... 6d1d0455f4

Mediatrix Capital, which claimed that its clients profited for 5 consecutive years without a single monthly loss, and which also was awarded as the Best Family Office Asset Manager in Monaco, is now been accused by U.S. Securities and Exchange Commission (SEC) of running a Ponzi scheme.

SEC announced that it had obtained a temporary restraining order and an emergency asset freeze against three Mediatrix Capital principals to stop a Ponzi like international trading program with more than 125 million USD of investors money at stake.

According SEC since March 2016 Mediatrix Capital and its principals Michael Young, Michael Stewart and Bryant Sewall attracted investors money by claiming to invest them in an algorithmic trading strategy, that had returned over 1600% since December 2013.

SEC however reveals that the strategy caused loses of more than 18 million of investors money in 2018 alone, while the defendants stole another 35 million USD for their personal expenses.

Dollar Mixed as Market Digests Powell Speech
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Investing.com -- The dollar was a touch lower against the euro in early trading Wednesday, trading in narrow ranges in almost all pairs as markets used a lull in the data calendar to digest the contents of Federal Reserve Chairman Jerome Powell’s speech on Tuesday.

By 4 AM ET (0800 GMT), the EUR/USD pair was at $1.0981, up some 0.2% from late Tuesday's levels. The dollar index, which measures the greenback against a basket of developed-market currencies, was down 0.1% at 98.680.

Powell had said that the Fed will soon start expanding its balance sheet again. He took pains to stress that this was not the resumption of “quantitative easing”, but rather a technical exercise in ensuring that the financial system has enough liquidity to function.

That suggests that the Fed will limit itself to buying short-dated assets, avoiding any attempt to intervene directly in price formation for longer maturities. By contrast, the European Central Bank recently committed to resuming purchases of 20 billion euros of government bonds a month, and is likely to spread those out all along the yield curve in an attempt to depress all euro maturity rates.

Separately, Powell noted that he hadn’t ruled out another interest rate cut this year, but stressed that the Fed would be data-led. Analysts say that points increasingly to lower U.S. rates sooner rather than later.

“It does look as if the US economy is losing momentum,” said ING chief economist for Asia-Pacific Robert Carnell. “Our house forecast of an October rate cut followed by a further cut in December looks highly plausible given the recent run of data. It would get a further boost if trade talks come to nothing.”

Trade talks between the U.S. and China are due to resume on Thursday, but hopes of a breakthrough have receded dramatically as the U.S. has taken a string of punitive measures focusing not on China’s trade practises but its human rights record, an area where it is politically much harder for Beijing to give ground.

Elsewhere, the British pound was bumping along the lower end of a new range after falling on Tuesday to a one-month low on the latest twist in the Brexit negotiations. The near-breakdown of talks amid increasingly bitter exchanges between London and other European capitals ought logically to increase the risk of a disorderly “No-Deal Brexit”.

By 0800 GMT, sterling was at $1.2228, up a little from late Thursday. It was down against the euro however at 1.1137, just off the one-month low it hit on Tuesday.

However, given that Prime Minister Boris Johnson has signalled he will ask for an extension of the Oct. 31 deadline, as required by U.K. law, if he doesn’t get a deal at next week’s summit, the market is still reluctant to price in the worst-case scenario.

https://www.investing.com/news/forex-ne ... ch-1993721

The Financial Crimes Enforcement Network which answers to US Treasury department will be putting forth new regulations on cryptocurrencies according to US Treasury Secretary Steven Mnuchin.
During a speech before the Senate Finance Committee Mr. Mnuchin pointed out the increase of funding to anti-terror measures and said “specifically on cryptocurrencies, we are spending a lot of time on this, on both an interagency basis and with the regulators. We’re about to roll out some significant new requirements at FinCEN.”
He said this in reply to a question posed by Senator Maggie Hassan about the significant budget increase for monitoring suspicious and illegal activities that involve cryptocurrencies.

Breaking: Fed cuts rates by 50 basis points

It's still testing the high at 1.3445, whether it will rally above that level will become clear next week.

For The Record
. as far as I know we didnt have such data during 2008 Financial crisis.

We didn't? Did they start tracking that data after that crisis?

Fed’s Powell will report to Congress in 8 hours


Federal Reserve Chair Jerome Powell on June 16 at 17:00 MT time begins the first of two days of testimony. It is a really important event for traders as the prospect for the economic recovery will volatile markets.

What is the Powell’s testimony?

It is a report to Congress. His speech consists of 2 parts. The first one is the prepared statement. The second one is a question and answer session. Traders are interested more in the last one as Powell doesn’t know questions before and he may unveil some unscripted moments that add fresh market movements. This time the main focus will be on how fast the Fed thinks the USA will recover and what measures the Fed will offer to support economy.

What to expect?

Analysts widely anticipate the upcoming Fed’s message will echo the pessimistic outlook Jerome Powell gave last week. After that negative prospect the market sentiment hugely deteriorated. It may happen again today. Today’s meeting even becomes a political issue. Democrats are pushing for further fiscal stimulus, while Republicans are against it as the US May jobs report was encouraging. Jerome Powell doesn’t want to enter the political fight. That’s why it’s more intriguing today to watch which side will be right.

What does it mean for a trader?

If the tone of Powell’s speech is dire and prospects are grim, safe-haven assets such as USD and gold will gain.

Otherwise, if Jerome Powell is optimistic (what’s less possible), stocks and riskier currencies will rise.

Source: https://fbs.com/analytics/news/

Skrill is introducing its commission free Money Transfer service to the United States.

The service of Money Transfer was launched some two years ago in Europe where it quickly rose to popularity, because of its facilitation of transferring money from user to user in over 40 countries. It first started dropping its commissions for transferring money once the consequences of the coronavirus were beginning to become clear. Furthermore, the company also dropped foreign exchange charges for its many users located in far corners of the world.