Policy & Regulation
Jun 10, 2024
Federal Reserve Likely to Maintain Interest Rates, Impact on Crypto Market Expected
According to CryptoPotato, the U.S. central bank is expected to keep interest rates unchanged in its policy decision on Wednesday, June 12. This decision follows strong jobs data for May, leading policymakers to likely maintain rates within the 5.25% to 5.5% range for the seventh consecutive meeting. The number of cuts planned for this year may also be reduced as policymakers evaluate a variety of economic data. June 12 will also see the release of core CPI (consumer price index) reports, a key measure of inflation that significantly influences the Federal Reserve's monetary policy decisions, including interest rate adjustments. An increase in the CPI reading indicates rising inflation, which usually pressures the Fed to either raise interest rates or maintain them. The year-on-year CPI figure is expected to remain at 3.4%, suggesting that the central bank will not alter rates this week. There has been a strong correlation between Bitcoin price and CPI data this year. Higher-than-expected CPI has negatively affected the digital asset, while a lower-than-expected CPI has had a positive impact. Other key events this week include the OPEC Monthly Report on Tuesday, the Fed Interest Rate Decision and Press Conference on Wednesday, May PPI Inflation data on Thursday, and MI Consumer Sentiment data on Friday. On Thursday, June 13, core PPI (producer price index) reports will be released. This data measures the average change over time in selling prices received by domestic producers of goods and services and serves as a valuable supplementary inflation indicator used by FOMC policymakers. Analysts predict the first rate cut to occur at the central bank's September policy meeting, the last gathering before the November 5 presidential election. The Fed rate decision is likely already factored into crypto markets, as it is widely expected that rates will remain unchanged. There may be some volatility mid-week, but the sideways momentum is likely to persist. Altcoins may suffer, however, as Bitcoin dominance remains high, delaying the onset of altseason. Crypto trader 'Emperor' shared his thoughts on the market's state with his 390,000 followers on June 9, suggesting that the market is in a confusing position.
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Jun 10, 2024
HSBC China Launches Digital Yuan Services For Corporate Clients
According to Odaily, HSBC Bank (China) Co., Ltd., also known as HSBC China, has recently announced the launch of digital yuan services for its corporate clients. This makes it one of the first foreign banks to offer digital yuan services to both corporate and retail customers. The move comes amid frequent developments in the digital yuan sector and the continuous expansion of pilot applications. HSBC's expansion of services to corporations indicates that foreign banks are actively using the digital yuan to enhance customer service capabilities and boost the development of the digital economy. Since the launch of personal digital yuan services in November 2023, HSBC China has been continuously laying out in the digital yuan field. Through close cooperation with the digital yuan operating institution, Bank of China, HSBC China has expanded its services to the corporate end. It has launched digital yuan public wallet-related services for its corporate clients, who can bind the digital yuan wallet to their bank accounts for management and automatically deposit the digital yuan into their bank accounts. As the first transaction after the opening of corporate digital yuan services, HSBC has made a trial in the education field. It assisted Nord Anglia Education Group, a bilingual education group, in opening digital yuan services for its six schools in Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou. It also helped them successfully complete the first digital yuan receipt, further expanding their receipt channels and empowering the construction of smart campuses.
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