News Regulators 

Fed’s Quarles recuses himself from Wells Fargo matters

“Quarles noted that he had severed all financial ties he and his immediate family had with the bank, including selling off his stock in the banking giant” reports foxbusiness.com. He said he was taking the step in light of the history his extended family members had with Wells Fargo which involved the sale of their interest in a bank. Quarles joined the Fed board in October after being nominated by President Donald Trump to fill the Fed’s key bank regulatory job. Source: foxbusiness.com Share This:

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Crypto News Regulators 

We talked to Nobel Prize-winning economist Paul Krugman about tax reform, Trump, and bitcoin

“Even that Tax Policy Center analysis that we were discussing, they assume that about 20% of the corporate tax is ultimately borne by workers” writes Graham Rapier for businessinsider.com. Also, about a third, we think, of the corporate tax cut benefit to after-tax corporate profits will actually go to foreigners.If you ask what happens in the first year from a corporate tax cut, none of it goes to workers. Source: businessinsider.com Share This:

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Fed’s Evans says he voted against raising interest rates because inflation is too low

“The Fed on Wednesday voted 7-2 to raise a key U.S. interest rate to a range of 1.25% to 1.5%” writes Jeffry Bartash for marketwatch.com. Chicago Federal Reserve President Charles Evans said he voted against the U.S. central bank’s decision to lift interest rates this week because inflation was too low to justify an increase in the cost of borrowing money.In a statement Friday, Evans said he’s worried inflation could remain unusually low and he wanted to wait for more information before acting.He repeatedly stress concerns about low inflation before…

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News Regulators 

Gold ends slightly higher, marks first weekly rise in a month

“Seasonally, January is generally a good month to own precious metals, particularly gold,” he said” writes Markets Commodities Reporter for marketwatch.com. Prices got a boost after the Federal Reserve announced its decision this week to raise interest rates, as expected, and didn’t change its forecast for inflation and interest rates in 2018.Gold ended with a modest climb Friday, logging a gain for the week following three-straight weeks of declines.”The outlook for gold is good. February gold GCG8, +0.06% rose 40 cents to settle at $1,257.50 an ounce. Source: marketwatch.com Share This:

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Yield curve flattens further on growing expectation for Fed to raise rates

“The 10-year German bond yield TMBMKDE-10Y, -0.60% was barely changed at 0.310%” writes Sunny Oh for marketwatch.com. The 10-year French bond yield TMBMKFR-10Y, -1.49% edged higher a basis point to 0.644%.The 30-year bond yield TMUBMUSD30Y, -0.63%  added 2.8 basis points to 2.710%.Holders of U.S. government paper watch European interest rates closely as they tend to move in lockstep with U.S. rates, with some analysts saying that low European yields have kept a lid on Treasury rates.The 2-year note yield TMUBMUSD02Y, +2.07%  rose 2.4 basis points to 1.811%. Source: marketwatch.com Share This:

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Crypto News Regulators 

Bitcoin is a “Highly Speculative Asset”, Says Federal Reserve’s Yellen

“Speaking at the Federal Reserve Annual Meeting this year, a three-day event attended by representatives from over 90 central banks, Yellen encouraged her counterparts to study blockchain technology” writes unknown author for cryptocoinsnews.com. In her final press conference as Fed Reserve Chair, Janet Yellen called bitcoin “a highly speculative asset” that “doesn’t constitute legal tender.” Yellen was speaking to reporters in her final presser on Wednesday (her term comes to an end in February) when the subject of bitcoin came up.As reported by CCN in early 2014, Yellen underlined bitcoin…

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News Regulators Stocks 

US stocks indexes close mostly higher after Fed rate hike

“The decline in financial stocks came even as the Federal Reserve raised its benchmark rate for the third time this year” reports foxbusiness.com. Packaged food and beverage stocks, health care companies and industrials shares accounted for much of the market’s modest gains.The Russell 2000 index of smaller-company stocks picked up 8.33 points, or 0.6 percent, to 1,524.45. Source: foxbusiness.com Share This:

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Markets News Regulators 

Dow notches record as Fed hikes rates

“The S&P 500 ended slightly lower on Wednesday pressured by the financial sector after the Federal Reserve announced a widely expected interest rate hike but kept its rate outlook for coming years even as it projected faster U.S. economic growth” reports foxbusiness.com. The S&P utilities .SPLRCU sector pared gains after hitting a session high to end up 0.3 percent. Source: foxbusiness.com Share This:

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Crypto Markets News Regulators 

Janet Yellen: Bitcoin is a ‘highly speculative asset’

“Outgoing Federal Reserve Board Chair Janet Yellen said Wednesday that bitcoin is a “highly speculative asset,” and downplayed its supposed role as a currency” writes Pete Kasperowicz for washingtonexaminer.com. On the stock market, Yellen noted that the Fed has said in recent months that valuations are “elevated” and “on the high end” of the historical range.However, she said the Fed has no policy related to bitcoin and has not offered any specific guidance to banks on the new, rising asset. Source: washingtonexaminer.com Share This:

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The Fed has raised interest rates again — here’s how it happens and why it matters

“After the Fed lifts the fed funds rate, the baton is passed to banks” writes Akin Oyedele for businessinsider.com. When the fed funds rate rises, banks also hike the rates they charge consumers, so borrowing costs increase across the economy.When the Fed raises rates, banks are less incentivized to lend, since they are earning more to park their cash in reserves.In July, the last time the Fed raised rates, it set the repo rate at 1% and the IOER at 1.25%.The effective fed funds rate, which is what banks use…

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