This article is a companion piece to today’s Morning Wire Afternoon Update. To listen to the podcast version, click <a href="https://www.dailywire.com/podcasts/morning-wire" target="_blank" rel="noopener">here</a>.
Fed Raises Rates Again
The Federal Reserve enacted its <a href="https://www.dailywire.com/news/federal-reserve-raises-target-interest-rates-by-quarter-point-marking-slowdown-of-aggressive-hikes" target="_blank" rel="noopener">smallest rate hike</a> in nearly a year today by raising its key interest rate by 0.25%. This is the eighth hike since March. The Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.
FBI Searches Biden&#8217;s Beach House
The FBI searched President Biden’s Rehoboth beach vacation home <a href="https://www.dailywire.com/news/fbi-seizes-materials-during-search-of-biden-vacation-home-as-criminal-investigation-grows" target="_blank" rel="noopener">Wednesday morning amid</a> the Special Counsel’s investigation into Biden’s handling of classified documents. The 3.5-hour search reportedly yielded no classified documents, but some “materials and handwritten notes” from his time as vice president were taken, according to Biden’s team. Bob Bauer, Biden’s personal attorney, said that the search was “conducted with the President’s full support and cooperation.”
Trump Takes On Sex-Change Surgeries For Kids
Former President Trump <a href="https://www.dailywire.com/news/trump-unveils-plan-to-protect-children-from-left-wing-gender-insanity" target="_blank" rel="noopener">released</a> a video Tuesday promising to ban transgender medical procedures on children if he’s elected in 2024:
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
NEW VIDEO: President Trump&#39;s Plan to Protect Children from Left-Wing Gender Insanity <a href="https://t.co/ibQkVUaA0C">pic.twitter.com/ibQkVUaA0C</a>
&mdash; Trump War Room (@TrumpWarRoom) <a href="https://twitter.com/TrumpWarRoom/status/1620489059608023042?ref_src=twsrc%5Etfw">January 31, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Tyre Nichols&#8217; Funeral Held Wednesday
Twenty-nine-year-old Tyre Nichols was laid to rest today following a funeral in Memphis. The funeral included a eulogy from Reverend Al Sharpton and remarks from Ben Crump, the lawyer representing Nichols’ family. Nichols was stopped three weeks ago for an alleged traffic violation and died three days later after video allegedly shows him being severely beaten by police.
One Dead After D.C. Suspect Shoots Up Metro Stop
A shooting suspect who reportedly referred to himself as “the Kill-Monger” was arrested by D.C. police after he allegedly shot four bystanders at a Metro stop just blocks away from the U.S. Capitol. One of those victims tragically passed away. Here’s an eyewitness who said he is “lucky to be alive”:
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
“I’M LUCKY TO BE ALIVE”: A witness tells me that this shooting started on a bus, and continued down into the Potomac Ave Metro Station. 
He said the shooter appeared to be firing at random &amp; referred to himself as a “kill-monger”. 
Witness did not want to be on cam. <a href="https://t.co/7MPLBL9MXT">pic.twitter.com/7MPLBL9MXT</a>
&mdash; Joseph Olmo (@ReporterJoseph) <a href="https://twitter.com/ReporterJoseph/status/1620803156350500864?ref_src=twsrc%5Etfw">February 1, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 College Board Makes Changes To AP African American Studies Curriculum
The college board <a href="https://www.dailywire.com/news/revised-version-of-ap-african-american-studies-course-tones-down-wokeness-desantis-admin-reviewing" target="_blank" rel="noopener">announced</a> Wednesday that it will be removing sections of its Advanced Placement African American Studies history course that focuses on Critical Race Theory and queer education. The decision comes after Florida Governor Ron DeSantis banned the course from his state, claiming that “education is about the pursuit of truth, not the imposition of ideology or the advancement of a political agenda.&#8221;
Brady Says Goodbye
NFL Quarterback Tom Brady <a href="https://www.dailywire.com/news/tom-brady-announces-retirement-from-football-for-good" target="_blank" rel="noopener">retired</a> again today, this time he says “for good.” In an emotional message that he posted on Instagram, the seven-time super bowl champion, who many consider the greatest to ever play the game, officially said goodbye to the sport he loves.
 Alec Baldwin Charged
On Tuesday, Alec Baldwin was <a href="https://www.dailywire.com/news/prosecutors-file-criminal-charges-against-alec-baldwin-over-shooting-death-on-rust-set" target="_blank" rel="noopener">officially charged</a> by prosecutors in New Mexico with involuntary manslaughter. He allegedly did not go to &#8220;required firearms training&#8221; before filming began and created &#8220;a climate of recklessness&#8221; on the “Rust” film’s set.
This article is a companion piece to today’s Morning Wire Afternoon Update. To listen to the podcast version, click <a href="https://www.dailywire.com/podcasts/morning-wire" target="_blank" rel="noopener">here</a>.

Wednesday

Wednesday Afternoon Update: Brady Says Goodbye, FBI Searches Biden’s Beach House, Trump Tackles Sex-Change Surgeries For Minors

Wednesday Afternoon Update: Brady Says Goodbye, FBI Searches Biden's Beach House, Trump Tackles Sex-Change Surgeries For Minors

Al Sharpton

Alec Baldwin

Donald Trump

Federal Reserve

General

Morning Wire

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Ron DeSantis

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Officials at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> announced a 0.25% increase in the target <a href="http://dailywire.com/topic/interest-rates" target="_blank" rel="noopener">federal funds</a> rate, marking a slowdown from previous 0.75% and 0.5% rate hikes meant to combat <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflation</a>.
Price levels declined slightly last month amid a decrease in energy prices: year-over-year inflation fell from 7.1% in November to 6.5% in December, marking the largest overall decline in nearly three years even as food and shelter prices continue to increase, according to a <a href="https://www.dailywire.com/news/the-tide-has-turned-inflation-sees-largest-drop-since-2020-lockdowns" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics. Members of the Federal Open Market Committee said in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230201a.htm" target="_blank" rel="noopener">statement</a> on Wednesday that &#8220;ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive.&#8221;
Federal Reserve Chair Jerome Powell previously <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">confirmed</a> that officials would “moderate the pace of our rate increases.” Target interest rates now sit between 4.5% and 4.75%.
“Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt,” he said. “Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level.”
Rate hikes increase the cost of borrowing money for consumers and businesses, decreasing inflationary pressures as a result of lower aggregate demand. The effects of higher interest rates are especially noticeable in the housing sector, where 30-year fixed mortgage rates soared from 3% at the beginning of last year to 7% in October before decreasing to roughly 6%, according to <a href="https://fred.stlouisfed.org/series/MORTGAGE30US" target="_blank" rel="noopener">data</a> from government-backed mortgage company Freddie Mac.
Monetary policymakers are seeking to reverse nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates. Officials <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by 0.75% on four consecutive occasions before implementing a 0.5% increase at the end of last year.
The Federal Open Market Committee expects that efforts to achieve 2% inflation, the benchmark largely maintained for three decades before the lockdown-induced recession, will take “some time,” as revealed by <a href="https://www.federalreserve.gov/monetarypolicy/fomcminutes20221214.htm" target="_blank" rel="noopener">minutes</a> from their December meeting. “Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path,” a summary said. “In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
Inflation has diminished buying power among American households and increased the extent to which they <a href="https://www.dailywire.com/news/some-consumers-financed-holiday-spending-with-record-amounts-of-debt" target="_blank" rel="noopener">utilize</a> debt to make purchases. Rising price levels have outpaced nominal wage increases, producing a 1.7% year-over-year decline in real average hourly earnings as of December, according to <a href="https://www.bls.gov/news.release/realer.nr0.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics.
The latest rate hike comes after the economy <a href="https://www.dailywire.com/news/economy-grew-in-fourth-quarter-as-recession-fears-loom-for-2023" target="_blank" rel="noopener">grew</a> at a 2.9% annualized rate in the fourth quarter of 2022, surpassing expectations even as recessionary concerns loom. Economists are divided on whether the nation will soon witness a contraction: Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession would occur in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted analysts at the company believe “there are strong reasons to expect positive growth in coming quarters.”

Chairman Jerome Powell Holds A Press Conference At The Federal Reserve

Federal Reserve Raises Target Interest Rates By Quarter Point, Marking Slowdown Of Aggressive Hikes

Federal Reserve Raises Target Interest Rates By Quarter Point

Economy

Inflation

Interest Rates

Recession

Calls for the creation of a trillion-dollar platinum coin to help the United States avoid defaulting on the <a href="https://www.dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a> have resurfaced as the latest <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> battle starts on Capitol Hill.
Treasury Secretary Janet Yellen <a href="https://www.dailywire.com/news/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached" target="_blank" rel="noopener">notified</a> House Speaker Kevin McCarthy (R-CA) and other lawmakers in a <a href="https://home.treasury.gov/news/press-releases/jy1196" target="_blank" rel="noopener">letter</a> that the debt ceiling, an arbitrary cap on the national debt established by Congress, crossed the statutory limit of nearly $31.4 trillion as of Thursday. As House Republicans and the Biden administration launch negotiations to determine potential budget cuts, some Left-wing economists reintroduced calls to mint a trillion-dollar coin to resolve the debt crisis.
Nathan Tankus, a leading proponent of the idea, asserted in an <a href="https://www.ft.com/content/3e9d6924-42af-4892-951e-dee36a020ea7">article</a> for the Financial Times that the core objection to the move is the concern that policymakers at the Federal Reserve will not accept its validity. “The coin, having already been issued, would be legal tender, and the Fed would have no basis for refusing it,” he countered. “Even so, I don’t think the Fed would force the Treasury to seek alternatives. So the Biden administration should call the Fed’s bluff.”
Washington Post economics reporter Jeff Stein recently <a href="https://twitter.com/JStein_WaPo/status/1616415245605502977?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1616415245605502977%7Ctwgr%5E0a0a3e830742c7bcb9e8a0868103ea8e0a77b38e%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.nationalreview.com%2Fcorner%2Fignore-scotus-and-send-troops-to-the-fed-mint-the-coin-activists-get-unhinged%2F" target="_blank" rel="noopener">asked</a> Tankus and Rohan Grey, an assistant law professor at Willamette University who also supports minting the coin, how they would respond to the Supreme Court striking down the idea. Grey responded by suggesting that policymakers could merely “ignore” the Supreme Court and “send troops” to ensure that the Federal Reserve accepts the currency.
Supporters of the plan claim that a <a href="https://www.law.cornell.edu/uscode/text/31/5112" target="_blank" rel="noopener">law</a> permitting the Treasury Secretary to “mint and issue platinum bullion coins and proof platinum coins” does not include an upper limit on a given coin’s denomination. Treasury officials would merely mint a trillion-dollar platinum coin under the plan and deliver the currency for deposit at the Federal Reserve.
Detractors for the theory meanwhile contend that the trillion-dollar coin would worsen inflation readings, which are currently near their highest levels in four decades.
The prospect of a trillion-dollar coin is by no means completely novel. Former President Barack Obama explained in a 2017 <a href="https://www.businessinsider.com/obama-mint-trillion-dollar-coin-scariest-night-debt-ceiling-2017-1" target="_blank" rel="noopener">interview</a> with Pod Save America that his advisers briefly considered minting the coin amid debate over the 2013 debt crisis. “There was this theory that I had the authority to issue through the mint this massive trillion-dollar coin and on that basis, we could try to pay off U.S. Treasurys,” he remarked. “It was a very realistic possibility that we couldn’t get the votes for that and we couldn’t get those debts rolled over and we would be in a situation where we were technically in default. At that point, you were in uncharted territory.”
A similar controversy over the federal government’s ability to fulfill obligations emerged two years ago, Rep. Rashida Tlaib (D-MI) <a href="https://twitter.com/RashidaTlaib/status/1442852913915826187" target="_blank" rel="noopener">tweeted</a> “#MintTheCoin,” a hashtag that was used by proponents of the coin during the Obama-era debt crisis.
The most recent breach of the debt ceiling occurred after Republican lawmakers <a href="https://www.dailywire.com/news/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support" target="_blank" rel="noopener">struck a deal</a> with McCarthy under which the party’s new majority would introduce a budget that refrains from increasing the statutory debt limit. Senate Majority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) contended in a <a href="https://www.democrats.senate.gov/newsroom/press-releases/schumer-jeffries-statement-on-need-to-pass-legislation-to-avoid-a-disastrous-default" target="_blank" rel="noopener">statement</a> that Republicans alone are to blame for the fiscal uncertainty. “A default forced by extreme MAGA Republicans could plunge the country into a deep recession and lead to even higher costs for America’s working families on everything from mortgages and car loans to credit card interest rates,” they said.

Federal Reserve Lowers Key Rate By Three Quarters Of A Point

Calls To Mint Trillion-Dollar Coin Resurface As Government Faces Debt Crunch

Should The Government Print A $1 Trillion Coin To Solve The Debt Crisis?

Debt Ceiling

National Debt

Treasury Department

<a href="http://dailywire.com/topic/europe" target="_blank" rel="noopener">European</a> Central Bank Executive Board Member Isabel Schnabel contended that monetary policy should be used to accelerate the “green transition” as <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> Chair Jerome Powell asserted the opposite.
The two policymakers presented their views on Tuesday during the Symposium on Central Bank Independence in Sweden. Schnabel remarked during her <a href="https://www.ecb.europa.eu/press/key/date/2023/html/ecb.sp230110~21c89bef1b.en.html" target="_blank" rel="noopener">speech</a> that the European Central Bank should align policy decisions with the goals established by the Paris Agreement.
“While governments need to accelerate their efforts to put the economy on a path towards net zero emissions, the drastic change in the macroeconomic and financial environment over the past year also requires central banks to review the scale and scope of their own contribution to the green transition,” she told policymakers. “We will increasingly address climate risks in our risk control and collateral frameworks, including by eventually making climate-related corporate disclosures compulsory for bonds to remain eligible as collateral in our refinancing operations.”
Schnabel said that the European Central Bank should consider “reshuffling the portfolio” toward “greener” bond issuers, as well as “foster incentives” for companies to reduce emissions. She added that “fiscal policy needs to remain in the driving seat and accelerate the green transition.”
The remarks from Schnabel contrast with the approach advocated by Powell, who <a href="https://www.dailywire.com/news/stick-to-our-knitting-federal-reserve-will-not-dabble-in-social-policy-jerome-powell-says" target="_blank" rel="noopener">called</a> on fellow central bankers to “stick to our knitting” and not “wander off to pursue perceived social benefits that are not tightly linked to our statutory goals and authorities.”
“Some analysts ask whether incorporating into bank supervision the perceived risks associated with climate change is appropriate, wise, and consistent with our existing mandates,” he commented. “Addressing climate change seems likely to require policies that would have significant distributional and other effects on companies, industries, regions, and nations. Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public’s will as expressed through elections.”
The Federal Reserve has nevertheless introduced a number of programs in recent months to consider perceived “climate-related financial risks.” Officials <a href="https://www.dailywire.com/news/federal-reserve-will-evaluate-climate-related-financial-risks-with-help-from-bidens-new-climate-officer" target="_blank" rel="noopener">unveiled</a> an initiative with six American banks to examine various risk scenarios posed by climate change and <a href="https://www.dailywire.com/news/bidens-treasury-advisory-committee-on-racial-equity-to-be-led-by-defund-the-police-advocate-former-philadelphia-mayor" target="_blank" rel="noopener">revealed</a> plans to work with the Treasury Department to consider the private sector’s approach to purported climate risk. Democratic lawmakers have <a href="https://www.warren.senate.gov/newsroom/press-releases/warren-waters-gillibrand-reintroduce-their-bill-requiring-the-fed-to-close-racial-employment-and-wage-gaps" target="_blank" rel="noopener">introduced</a> a bill to incorporate social issues such as racial equity into the mandate of the Federal Reserve.
The European Central Bank has explicit <a href="https://www.ecb.europa.eu/ecb/climate/html/index.en.html" target="_blank" rel="noopener">objectives</a> to “better understand, monitor, and manage climate-related risks,” as well as “support an orderly transition to a carbon-neutral economy.” The Bank of England has likewise launched <a href="https://www.bankofengland.co.uk/stress-testing/2022/results-of-the-2021-climate-biennial-exploratory-scenario" target="_blank" rel="noopener">initiatives</a> meant to help executives foster an economy with net zero emissions.
Central banks across the world are currently working to maintain price stability amid inflationary pressures that follow government lockdown mandates. An <a href="https://www.imf.org/en/Publications/WEO" target="_blank" rel="noopener">estimate</a> from the International Monetary Fund said that global inflation was expected to reach 8.8% in 2022 before a decline to 6.5% in 2023 and 4.1% in 2024. Policymakers at the Federal Reserve <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions last year before implementing a half-percent increase last month, causing higher rates across the economy.

FRANCE-ENERGY-SOLAR-PHOTOVOLTAICS-ENVIRONMENT

European Central Bank Doubles Down On Climate Activism Even As Federal Reserve Backs Off

Central Bankers Spar On Climate Activism

Climate Change

European Union

World

<a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> Chair Jerome Powell said that the central bank will refrain from advancing social policy, especially with respect to <a href="http://dailywire.com/topic/climate-change" target="_blank" rel="noopener">climate change</a>.
Powell remarked in a Tuesday <a href="https://www.federalreserve.gov/newsevents/speech/powell20230110a.htm" target="_blank" rel="noopener">speech</a> delivered in Sweden that elected lawmakers and monetary policymakers should pursue their distinct mandates. He called on fellow central bankers to “stick to our knitting” and not “wander off to pursue perceived social benefits that are not tightly linked to our statutory goals and authorities.”
“Some analysts ask whether incorporating into bank supervision the perceived risks associated with climate change is appropriate, wise, and consistent with our existing mandates,” Powell said. “Addressing climate change seems likely to require policies that would have significant distributional and other effects on companies, industries, regions, and nations. Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public&#8217;s will as expressed through elections.”
The Federal Reserve has recently introduced programs meant to evaluate perceived “climate-related financial risks.” Policymakers <a href="https://www.dailywire.com/news/federal-reserve-will-evaluate-climate-related-financial-risks-with-help-from-bidens-new-climate-officer" target="_blank" rel="noopener">unveiled</a> an initiative with six of the nation’s largest banks to examine various risk scenarios posed by climate change, although no “capital consequences” would emerge from the exercise. Officials also <a href="https://www.dailywire.com/news/bidens-treasury-advisory-committee-on-racial-equity-to-be-led-by-defund-the-police-advocate-former-philadelphia-mayor" target="_blank" rel="noopener">announced</a> plans to work with the Treasury Department to consider the private sector’s approach to climate risk.
Other nations’ central banks, including the Bank of England, have formerly conducted <a href="https://www.bankofengland.co.uk/stress-testing/2022/results-of-the-2021-climate-biennial-exploratory-scenario" target="_blank" rel="noopener">similar initiatives</a> meant to help executives navigate a transition to an economy with net zero emissions. The Federal Reserve routinely runs <a href="https://www.dailywire.com/news/federal-reserve-stress-test-shows-big-banks-will-be-fine-through-the-next-recession" target="_blank" rel="noopener">stress tests</a> to determine whether the financial sector is able to weather various economic crises.
Powell nevertheless added that the Federal Reserve, in his view, has a “narrow” but “important” responsibility with respect to climate risks, largely by way of bank supervision. He clarified that using monetary policy or supervisory tools to “promote a greener economy” would be “inappropriate for us,” adding that the Federal Reserve will never be a &#8220;climate policymaker.&#8221;
Federal Reserve officials have recently grappled with record inflation that has presented obstacles to economic growth following the lockdown-induced recession. Policymakers <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions last year before implementing a half-percent increase last month, causing higher rates across the economy.
The speech from Powell comes after multiple Democratic lawmakers proposed enacting legislation that would incorporate racial equity goals into the Federal Reserve mandate, which currently centers upon maximum employment and price stability. The Federal Reserve Racial and Economic Equity Act, which passed the House of Representatives last year, would require central bankers to minimize and eliminate “racial disparities in employment, wages, wealth, and access to affordable credit,” as well as submit labor force trends to lawmakers with “a comparison among different demographic groups, including race, gender, and educational attainment,” according to a <a href="https://www.warren.senate.gov/newsroom/press-releases/warren-waters-gillibrand-reintroduce-their-bill-requiring-the-fed-to-close-racial-employment-and-wage-gaps" target="_blank" rel="noopener">press release</a> from the office of Sen. Elizabeth Warren (D-MA).
“Long before the pandemic hit people of color the hardest, my colleagues and I had called on the Federal Reserve to fix systemic barriers,” Rep. Maxine Waters (D-CA) remarked. “The current crisis has only further highlighted the fact that we need all hands on deck, including the Federal Reserve, to take action to address racial equity.&#8221;

Fed Chair Jerome Powell Delivers Semiannual Monetary Report At Senate Hearing

‘Stick To Our Knitting’: Federal Reserve Will Not Dabble In Social Policy, Jerome Powell Says

Federal Reserve Will Not Dabble In Social Policy, Jerome Powell Says

Critical Race Theory

Regulators advised <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">banks</a> and other financial institutions to avoid <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrencies</a>, a warning that comes after the implosion of digital asset company FTX and deliberations over a possible central bank digital currency in the United States.
A joint <a href="https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230103a1.pdf" target="_blank" rel="noopener">statement</a> from the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a>, the Federal Deposit Insurance Corporation, and the <a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Office of the Comptroller of the Currency</a> said that the nascent sector is characterized by “significant volatility” and possible fraud, warning executives of scams, legal uncertainties, and contagion between firms rocked by recent tumult in cryptocurrency markets.
“Given the significant risks highlighted by recent failures of several large crypto-asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related activities and exposures at each banking organization,” the document said. “The agencies have significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities or have concentrated exposures to the crypto-asset sector.”
Though the document clarified that offering services to cryptocurrency companies or otherwise engaging with the digital asset market is “neither prohibited nor discouraged,” the statement raised the specter of money laundering risks, which banks are zealous to prevent because of <a href="https://www.occ.treas.gov/topics/supervision-and-examination/bsa/index-bsa.html" target="_blank" rel="noopener">harsh penalties</a> for executives considered negligent in discouraging the practice.
“The agencies will continue to closely monitor crypto-asset-related exposures of banking organizations,” the document added. “As warranted, the agencies will issue additional statements related to engagement by banking organizations in crypto-asset-related activities. The agencies also will continue to engage and collaborate with other relevant authorities, as appropriate, on issues arising from activities involving crypto-assets.”
Heightened pressure from regulators comes after cryptocurrency exchange platform FTX suddenly <a href="https://www.dailywire.com/news/30-year-old-billionaire-loses-entire-fortune-overnight-as-his-bahamas-based-cryptocurrency-empire-implodes" target="_blank" rel="noopener">declared bankruptcy</a> following a liquidity crisis, leading to bankruptcies among <a href="https://www.dailywire.com/news/crypto-company-blockfi-files-for-bankruptcy-after-ftx-collapse" target="_blank" rel="noopener">other exchange platforms</a>. Sam Bankman-Fried, the founder of FTX, has been <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">accused</a> of money laundering and fraud for allegedly commingling user funds with sister trading firm Alameda Research and using the assets to make investments.
Officials at the Federal Reserve have long considered the creation of a central bank digital currency which, unlike bitcoin and other decentralized cryptocurrencies, would be managed by policymakers and tethered to the dollar. Federal Reserve Chair Jerome Powell has <a href="https://www.dailywire.com/news/watch-fed-chair-says-his-mind-is-open-on-a-digital-dollar" target="_blank" rel="noopener">told</a> lawmakers that his “mind is open” to a digital dollar, noting he was “legitimately undecided” on whether the “benefits outweigh the costs” of central bank digital currencies. “We would want very broad support in society and in Congress,” he remarked.
Shortly after FTX filed for bankruptcy, the Federal Reserve Bank of New York announced a partnership with leading financial institutions such as BNY Mellon and Mastercard to <a href="https://www.dailywire.com/news/federal-reserve-launches-digital-dollar-initiative-days-after-leading-cryptocurrency-firm-goes-under" target="_blank" rel="noopener">launch</a> a digital dollar simulation. The test will “experiment with the concept of a regulated liability network,” a concept for a market infrastructure that would facilitate “digital asset transactions that connect deposits held at regulated financial institutions using distributed ledger technology.”
Critics of central bank digital currencies assert that digital assets present a number of privacy and security concerns. Republican members of the House Financial Services Committee have issued a <a href="https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408195" target="_blank" rel="noopener">series of principles</a> that any potential digital dollar project must fulfill, including the establishment of privacy guarantees, the promotion of private sector innovation, and the protection of the dollar as the world’s reserve currency.

Federal Reserve Recommends Banks Stay Away From Crypto As Possible ‘Central Bank Digital Currency’ Is Weighed

Federal Reserve Recommends Banks Stay Away From Crypto

Banks

Cryptocurrency

<a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">Unemployment</a> fell in December as the number of new <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">jobs</a> soared past economists’ forecasts, according to <a href="https://www.bls.gov/news.release/empsit.nr0.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics released Friday.
Total nonfarm employment increased by 223,000, surpassing analysts’ expectations of 200,000 new positions. The unemployment rate declined from 3.7% in November to 3.5% in December.
Bankrate Senior Economic Analyst Mark Hamrick said in comments provided to The Daily Wire that the jobs report provides “a measure of reassurance regarding job security” as the labor market remains resilient despite recent economic turmoil. The sectors witnessing the most robust job gains included leisure and hospitality, healthcare, and construction. The report also showed that there exist roughly 10.5 million job openings and 5.7 million unemployed individuals, reflecting a constrained labor market that has worsened <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures as employers struggle to fill their payrolls.
Average hourly earnings accordingly rose 4.6% year-over-year, falling below the 5% estimate from analysts. Nominal wages have grown over the past two years but have increased at a slower rate than price levels, implying depressed purchasing power among households.
“Worker pay is failing to keep up with the rise in prices at the consumer level. This is a source of stress on household budgets,” Hamrick continued. “How that equation unfolds in the months ahead will be key, including whether inflation pressures relent.”
Policymakers at the Federal Reserve have closely examined unemployment rates as the central bank reverses nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates and the purchase of government securities. Officials <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions before implementing a half-percent increase last month, causing higher interest rates across the economy.
“The collision of interests between so-called Wall Street and Main Street remains a conundrum for casual observers,” Hamrick said. “The Federal Reserve continues to look at the totality of employment data, including job openings, as contributing to inflation risk. This is among the reasons why Federal Reserve officials are sticking to their rate-raising guns, including the pledge to keep rates higher for longer.”
Members of the Federal Open Market Committee still believe efforts to achieve 2% inflation will take “some time,” as revealed by <a href="https://www.federalreserve.gov/monetarypolicy/fomcminutes20221214.htm" target="_blank" rel="noopener">minutes</a> from their meeting last month. “Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path,” a summary said. “In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
Economists generally believe this year will <a href="https://www.dailywire.com/news/big-short-investor-who-foresaw-2008-recession-lays-out-predictions-for-2023" target="_blank" rel="noopener">see a recession</a> in the United States, a reality that would follow one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst stock market</a> performances in modern history last year, while others are more skeptical that a contraction will occur. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession will strike in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted that analysts at the company believe the economy will “stick a soft landing” and entirely avoid a recession.

Bonita Springs, Florida, Publix grocery store checkout line cashiers and baggers at work

Unemployment Plummets In December As Federal Reserve Vows More Rate Hikes

Unemployment Fell In December, Marking Hope For Troubled Economy

Jobs

Unemployment

Higher <a href="http://dailywire.com/topic/interest-rates" target="_blank" rel="noopener">interest rates</a> are translating to record <a href="https://www.dailywire.com/topic/cars" target="_blank" rel="noopener">car</a> payments among Americans borrowing money to purchase new vehicles.
Actions from policymakers at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> to tame <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures have led to the fastest increase of the target federal funds rate in decades, impacting interest rates across the economy and raising the cost of borrowing money for consumers and businesses. The average annual percentage rate on new financed vehicles increased from 5.7% in the third quarter to 6.5% in the fourth quarter, according to <a href="https://www.edmunds.com/industry/press/rising-auto-loan-interest-rates-drive-share-of-1000-monthly-payments-to-record-levels-in-q4-according-to-edmunds.html" target="_blank" rel="noopener">data</a> from the car review website Edmunds, while the rate for used financed vehicles increased from 9% to 10%.
&#8220;At the onset of the pandemic, consumers benefited from low interest rates and elevated trade-in values, helping shield even the more questionable financing decisions from resulting in negative equity,” Edmunds Director of Insights Ivan Drury said. “But as we shifted toward an environment with diminished used car values and rising interest rates over the past few months, consumers have become less insulated from those riskier loan decisions, and we are only seeing the tip of the negative equity iceberg.&#8221;
Negative equity, which occurs when a debtor owes more money than an asset is worth, applied to 17.4% of new vehicle sales in the fourth quarter, marking an increase from 14.9% of sales in the third quarter. “Rapidly rising interest rates created an even greater barrier to entry for consumers who rely on financing,” added Drury, “which is the vast majority of car shoppers.”
Although the typical monthly car payment was $717 in the fourth quarter, constituting an increase from $659 in the previous quarter, the share of consumers paying $1,000 or more each month reached 15.7%, the highest reading on record. Average down payments surged to $6,780 from $5,921 over the same period as more consumers sought to avoid high rates.
Payments are unlikely to subside in the near future since <a href="https://www.federalreserve.gov/monetarypolicy/fomcminutes20221214.htm" target="_blank" rel="noopener">minutes</a> from the most recent Federal Open Market Committee meeting show that central bankers are prepared to take a “restrictive policy stance” on rising price levels for “some time.”
Supply chain pressures that continue to grapple the economy following the lockdown-induced recession have worsened surging vehicle prices. Average costs increased some 43% between February 2020 and September 2022, according to <a href="https://www.jpmorgan.com/insights/research/when-will-car-prices-drop#:~:text=In%20the%20U.S.%2C%20the%20average,February%202020." target="_blank" rel="noopener">data</a> from JPMorgan Research, which forecasted prices for used vehicles will adjust by falling as much as 20% this year.
Demand for automobiles still outpaces supply despite the advent of elevated interest rates, according to <a href="https://www.jdpower.com/business/press-releases/jd-power-lmc-automotive-forecast-december-2022" target="_blank" rel="noopener">data</a> from J.D. Power and LMC Automotive, which indicated that sales for new vehicles increased 9.6% between the fourth quarter of 2021 and the fourth quarter of 2022.
“While the inventory situation has improved modestly in the fourth quarter, supply remains well below the level at which consumer demand for new vehicles can be met,” J.D. Power Data and Analytics President Thomas King commented.
As inflation continues to outpace wage increases, rising price levels have prompted Americans to meet expenses by spending <a href="https://www.dailywire.com/news/burning-up-their-plastic-bidenflation-fueling-soaring-credit-card-debt-report-says" target="_blank" rel="noopener">beyond their means</a>. The portion of disposable personal income used to service consumer debt rose from 5.4% in the fourth quarter of 2021 to 5.8% in the third quarter of 2022, exceeding levels seen before the lockdown-induced recession, according to <a href="https://fred.stlouisfed.org/series/CDSP" target="_blank" rel="noopener">data</a> from the Federal Reserve.

Top View Concrete Car Parking Lot. Aerial View Of Car Parked At Car Parking Area Of Apartment.

More Americans Than Ever Have Monthly Auto Payments Over $1,000

Average Car Payments Surge Alongside Interest Rates

Cars

Various polls show that <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economists</a> generally expect a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a> this year, although there is no consensus among leading analysts.
The economy has been throttled by <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures, <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">labor</a> shortages, and backlogged <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chains</a>, contributing to negative growth in the first two quarters of last year. Central bankers at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> are embarking upon the most aggressive campaign to suppress rising price levels in decades as geopolitical pressures in eastern Europe and southeast Asia continue to mount.
Roughly 70% of economists <a href="https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?srnd=premium" target="_blank" rel="noopener">surveyed</a> by Bloomberg last month said that the United States would witness a recession this year. Respondents predicted that gross domestic product would show flat readings in the first and third quarters, as well as an annualized decline of 0.7% in the second quarter. They project year-over-year inflation, as measured by the Personal Consumption Expenditures Price Index, to approach 3% in the fourth quarter as the Federal Reserve hikes the target federal funds rate, a reality that will also produce 4.9% unemployment.
Another poll of professional economic forecasters from the National Association for Business Economics showed that most respondents say recessionary risks have surpassed 50% amid slower economic growth, higher inflation, and a lackluster labor market. “Panelists expect job growth will slow over the first three quarters of 2023 but remain positive,” Conference Board Chief Economist Dana Peterson said in a <a href="https://nabe.com/NABE/Surveys/Outlook_Surveys/December_2022_Outlook_Survey_Summary.aspx" target="_blank" rel="noopener">statement</a>.
Beyond the United States, a study from the World Bank likewise predicts that contractionary monetary policy in leading developed countries heightens the risk of a global recession.
“My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies,” World Bank Group President David Malpass said in a <a href="https://www.worldbank.org/en/news/press-release/2022/09/15/risk-of-global-recession-in-2023-rises-amid-simultaneous-rate-hikes" target="_blank" rel="noopener">press release</a>. “Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”
On the other hand, economists at Goldman Sachs place the risk of a recession in the United States at a significantly lower 35%, forecasting that the nation will “stick a soft landing” as inflation decreases with only a slight impact on unemployment.
“There are strong reasons to expect positive growth in coming quarters,” Goldman Sachs Research Head Jan Hatzius said in the investment bank’s <a href="https://www.goldmansachs.com/insights/pages/outlook-2023-us-expected-to-escape-recession.html" target="_blank" rel="noopener">outlook</a>. “Our economists expect real disposable income to increase to a pace of more than 3% over the next year. Even as financial conditions have tightened and are now subtracting about 2 percentage points from growth, the rise in real income is likely to be the stronger force next year.”
Positive growth could come as other major economies are rocked by problems more severe than those in the United States, as noted by a <a href="https://www.americanprogress.org/article/despite-global-inflation-the-u-s-economic-recovery-is-among-the-strongest-of-g-7-nations/" target="_blank" rel="noopener">report</a> from the Center for American Progress. Soaring energy prices in Europe driven by the Russian invasion of Ukraine and aggressive renewable power goals have led to higher price levels. The economy of China has suffered as zealous lockdown measures slow manufacturing activity and prompt some firms to start new operations abroad. Indeed, the pressures in major economies could prompt the rise of emerging markets such as India, which is projected to <a href="https://www.dailywire.com/news/major-indian-company-to-start-producing-semiconductors-as-global-shortages-threats-from-china-continue" target="_blank" rel="noopener">surpass</a> Japan and Germany as the world’s third-largest economy sometime in the next decade.

Times Square As U.S. Stocks Climb On Earnings

Economists Predict Whether 2023 Will See A Recession

Will There Be A Recession In 2023?

Supply Chain

Officials at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> raised the target <a href="http://dailywire.com/topic/interest-rates" target="_blank" rel="noopener">federal funds</a> rate by half of a percentage point, marking a slight slowdown in the most aggressive contractionary policy rollout in decades.
The move comes after the Federal Open Market Committee raised target rates in June, July, September, and November. The current target rate is now set between 4.25% and 4.5%.
“In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” the Federal Reserve’s Board of Governors said in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a.htm" target="_blank" rel="noopener">statement</a>.
Officials are presently seeking to end nearly three years of aggressive monetary stimulus, including near-zero target interest rates and the purchase of government securities from market actors, established in response to the lockdown-induced recession. Policymakers have <a href="https://www.dailywire.com/news/federal-reserve-hikes-interest-rates-three-quarters-of-a-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions, raising the cost of borrowing money for consumers and businesses and heightening the risk of a recession.
Federal Reserve Chair Jerome Powell recently <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">confirmed</a> that officials would “moderate the pace of our rate increases” as soon as this month. “Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt,” he said. “Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level.”
The rate hike comes shortly after the most recent inflation <a href="https://www.dailywire.com/news/november-inflation-surges-less-than-expected" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics showed that the Consumer Price Index rose 7.1% year-over-year as of November in a reading that was below analysts’ forecasts. An increase in food prices of 0.5% and an increase in shelter prices of 0.6% contributed to the headline number as energy prices fell 1.6%.
Policymakers at the Federal Reserve, which has a dual mandate of ensuring stable inflation and low unemployment, have likewise been carefully tracking the labor market. Joblessness remained historically low in November as the number of new positions soared past economists’ forecasts, according to another <a href="https://www.dailywire.com/news/unemployment-down-robust-labor-market-as-holidays-approach-jobs-report-shows" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics. The unemployment rate, 3.7%, was unchanged from the previous month.
Labor force participation rates have nevertheless lagged as many workers did not return to their positions after lockdowns produced significant job loss. Powell recently <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">remarked</a> that the workforce “participation gap” is largely a result of “excess retirements” that occurred beyond “what would have been expected from population aging alone,” even as younger cohorts generally return to the job market.
“In the labor market, demand for workers far exceeds the supply of available workers,” Powell continued, observing that nominal wages have grown faster than the rate expected under 2% inflation. “Thus, another condition we are looking for is the restoration of balance between supply and demand in the labor market.”
Rising mortgage rates induced by efforts from the Federal Reserve to control inflation have caused volatility in the housing market. The 30-year fixed mortgage rate remained below 3% for much of the past two years, according to <a href="https://fred.stlouisfed.org/series/MORTGAGE30US" target="_blank" rel="noopener">data</a> from government-backed mortgage company Freddie Mac, before briefly rising above 7% last month. Rising rates have decreased affordability even as evidence of a <a href="https://www.dailywire.com/news/home-prices-are-dropping-at-fastest-pace-ever-recorded-by-key-index" target="_blank" rel="noopener">decline in home prices</a> continues to mount.

Federal Reserve Hikes Target Interest Rates Half A Percentage Point

Federal Reserve Hikes Target Interest Rates By 0.5%

Sen. <a href="http://dailywire.com/topic/elizabeth-warren" target="_blank" rel="noopener">Elizabeth Warren</a> (D-MA) and Sen. Tina Smith (D-NM) asked the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> to examine the <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">banking</a> system’s exposure to <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrencies</a> amid continued fallout from defunct company FTX.
In a <a href="https://www.warren.senate.gov/imo/media/doc/Letter%20to%20Regulators%20re%20Banking%20System%20Exposure%20to%20Crypto.pdf" target="_blank" rel="noopener">letter</a> addressed to Federal Reserve Chair Jerome Powell, the lawmakers noted that cryptocurrency firms have desired the “benefits that come with federal recognition from bank regulators” but have not thus far generated a salient degree of partnerships with major financial institutions. The Democrats asked for information about the central bank’s process for evaluating relationships between banks and cryptocurrency companies.
“Banks’ relationships with crypto firms raise questions about the safety and soundness of our banking system and highlight potential loopholes that crypto firms may try to exploit to gain further access to banks,” Warren and Smith wrote. “While the banking system has so far been relatively unscathed by the latest crypto crash, FTX’s collapse shows that crypto may be more integrated into the banking system than regulators are aware.”
The letter noted that other cryptocurrency companies, such as BlockFi, have also filed for bankruptcy as a <a href="https://www.dailywire.com/news/crypto-company-blockfi-files-for-bankruptcy-after-ftx-collapse" target="_blank" rel="noopener">liquidity crisis</a> continues to upend the nascent sector. Voyager and Celsius declared bankruptcy earlier this year, while other cryptocurrency firms such as Genesis have <a href="https://www.dailywire.com/news/second-major-cryptocurrency-exchange-could-be-poised-to-go-bankrupt" target="_blank" rel="noopener">indicated</a> the looming possibility of insolvency.
A number of smaller banks, including Silvergate Capital, Provident Bancorp, Metropolitan Commercial Bank, Signature Bank, and Customers Bancorp, have ties to cryptocurrency ventures. Alameda Research, the company controlled by former FTX CEO Sam Bankman-Fried which allegedly pulled customers’ funds from the exchange to make investments, poured $11.5 million into Moonstone Bank, more than doubling its value. The institution has connections with other offshore digital asset ventures.
“Many of these small banks relied heavily on their crypto customers and are now experiencing heightened volatility,” continued Warren and Smith, both of whom serve as members of the Senate Banking Committee. An adjacent letter addressed to Federal Deposit Insurance Corporation Acting Chair Martin Gruenberg likewise inquired whether the agency is prepared to conduct a review of the banking system’s ties with cryptocurrency companies.
Among other data points, the letters requested the names of banks currently providing cryptocurrency services, holding dollar deposits for cryptocurrency-related firms, or facilitating transactions via stablecoin. With respect to Moonstone Bank and Alameda Research, the lawmakers asked whether the latter’s investment constituted “control” of the former under the Bank Holding Company Act.
The House Financial Services Committee is <a href="https://www.dailywire.com/news/bipartisan-committee-to-hear-from-sam-bankman-fried-and-crypto-allies-next-month" target="_blank" rel="noopener">preparing to hold</a> hearings regarding the collapse of FTX, which is based in the Bahamas; members of the Senate Agriculture Committee <a href="https://www.dailywire.com/news/top-commodities-regulator-tells-senators-he-met-with-sam-bankman-fried-10-times" target="_blank" rel="noopener">held a hearing</a> last week with Commodity Futures Trading Commission Chairman Rostin Behnam on increasing federal oversight of the cryptocurrency sector. Officials at the Securities and Exchange Commission have opened a criminal investigation into Bankman-Fried to determine whether the entrepreneur broke the law by transferring FTX customer funds to Alameda Research, according to a <a href="https://www.dailywire.com/news/federal-prosecutors-open-criminal-investigation-into-disgraced-ftx-founder-sam-bankman-fried-report-says" target="_blank" rel="noopener">report</a> from The New York Times.
Cryptocurrency, a form of decentralized <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works" target="_blank" rel="noopener">digital money</a> that can be transferred between users’ virtual wallets, has garnered the skepticism of many regulators. JPMorgan Chase CEO Jamie Dimon, comparing the assets to “pet rocks” during an <a href="https://www.dailywire.com/news/a-complete-sideshow-jpmorgan-chase-ceo-jamie-dimon-says-cryptocurrencies-are-like-pet-rocks" target="_blank" rel="noopener">interview</a> with CNBC this week, has raised concerns about “terrorism financing, tax avoidance, sex trafficking,” and other ways in which cryptocurrencies enable illicit activities.

Treasury Secretary Yellen And Fed Chair Powell Testify Before Senate Banking Committee On CARES Act

Elizabeth Warren Asks Federal Reserve To Investigate Banking System’s Exposure To Crypto

Warren Asks Fed To Look Into Bank-Crypto Alliances

Congress

Elizabeth Warren

<a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">Unemployment</a> remained historically low in November as the number of new jobs soared past economists’ forecasts, according to <a href="https://www.bls.gov/news.release/empsit.nr0.htm">data</a> from the Bureau of Labor Statistics released Friday.
Total nonfarm employment increased by 263,000 last month, surpassing analysts’ expectations of 200,000 new positions. The unemployment rate was unchanged from the previous month at 3.7%.
&#8220;The November employment report delivers a holiday season package of good news for American workers, including a strong increase in wages,” Bankrate Senior Economic Analyst Greg McBride said in comments provided to The Daily Wire. “In keeping with the classic divide sometimes seen between Main Street and Wall Street, the report tells the Federal Reserve it has more work to do in its battle against inflation, meaning higher interest rates to come.&#8221;
The central bank has indeed been eyeing employment data as officials roll back nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates and the purchase of government securities from market actors. Policymakers have <a href="https://www.dailywire.com/news/federal-reserve-hikes-interest-rates-three-quarters-of-a-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions, leading to chaos in the housing market and raising the cost of borrowing money for consumers and businesses.
Industries such as leisure and hospitality, healthcare, government, information, and manufacturing witnessed a “generally good distribution of job growth,” according to McBride, who observed that “retailing as well as warehousing and distribution posted job declines” in an unexpected reality for the holiday season. Amazon and FedEx revealed plans to <a href="https://www.dailywire.com/news/two-critical-companies-will-lay-off-furlough-employees-during-holiday-shopping-season" target="_blank" rel="noopener">dismiss employees</a> ahead of the critical period for logistics companies; the former will lay off employees in human resources, retail, and devices, while the latter will furlough delivery drivers.
Businesses have faced labor shortages as the number of positions available exceeds the number of workers available to fill them. “There continues to be a detrimental disconnect or imbalance between the supply and demand for labor,” McBride continued. “Demand broadly appears to remain remarkably strong, but any number of factors are continuing to weigh on the supply of prospective workers with labor force participation falling over the past two months and still below pre-pandemic levels.&#8221;
Federal Reserve Chair Jerome Powell <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">remarked</a> on Wednesday that the workforce “participation gap” is largely a result of “excess retirements” that occurred beyond “what would have been expected from population aging alone,” even as young people largely return to the job market.
Gains in nominal wages continued to lag behind rising price levels, implying an overall decrease in household purchasing power. While average hourly earnings rose 5.1% year-over-year as of November, the most recent inflation <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics showed 7.7% headline inflation as of October; price level data has not yet been released for last month.
The robust employment data will likely lead Federal Reserve officials to continue hiking interest rates. Some analysts have <a href="https://www.dailywire.com/news/elon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense" target="_blank" rel="noopener">criticized</a> policymakers for causing harm through their excessive zeal to manage inflation soon after a prolonged increase in the money supply.
“The Federal Reserve checks the box off on this report now less than two weeks away from its next policy-setting session,” McBride remarked. “In any case, Federal Reserve officials are intent on raising the benchmark rate further into restrictive territory.  Even if the central bank eases up as expected on the magnitude of rate increases, the journey likely continues in 2023 toward a higher ultimate rate destination in the pursuit of restraining inflation.&#8221;

Consumer Prices See Largest Increases In 30 Years

Unemployment Down; Robust Labor Market As Holidays Approach, Jobs Report Shows

Jobs Report Shows Robust Labor Market Ahead Of Holidays; Unemployment Remains Low

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