fed

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, questioned the practical benefits of cryptocurrencies and stablecoins in cross-border transactions during a panel discussion.

Kashkari described the statements made by crypto advocates on the subject as “empty rhetoric,” arguing that they have no real use case.

During the panel, Kashkari illustrated the fundamental questions he posed to representatives of the cryptocurrency sector with examples. Acknowledging that traditional bank transfers are expensive and slow, Kashkari countered those who claim stablecoins solve this problem with the following scenario: “Imagine someone living in the US sending money to a relative in the Philippines for grocery shopping. Traditional methods are costly and slow. But with a stablecoin, it arrives in Manila instantly, they say.”However, Kashkari continued, stating that this explanation was insufficient: “Well, you still have to convert it to local currency. Then they say that the marketeer also uses stablecoins. This is essentially saying that the whole world should use the same currency or that all this friction should disappear, which is not going to happen.”Kashkari argued that he asked the most fundamental question for crypto and stablecoins: “Give me a use case that actually works for consumers, besides drugs and illegal things.” He described the answers he received as “word salad,” saying, “There’s nothing there, just nonsense.”
Kashkari’s views reflect the Fed’s skeptical stance on digital assets. Having previously made similar criticisms, Kashkari has described cryptocurrencies as “completely useless” and a “tool for speculation.”#fed #PredictionMarketsCFTCBacking #TrendingTopic #controversial #USJobsData $USDC
$BTC
$ETH

Gold prices surged on Friday (February 20) during the US trading session, supported by weaker-than-expected US Q4 GDP data and fueled by market uncertainty surrounding medium- to long-term trade policy following the US Supreme Court's rejection of the Trump administration's comprehensive tariff plan. Gold closed up 2.24% at $5107.75.
The Supreme Court's rejection of the tariff policy provided the core support for trade policy uncertainty. The US Supreme Court ruled that the Trump administration's comprehensive global tariff measures under the International Emergency Economic Powers Act lacked legal authorization, rejecting this highly controversial use of presidential power. This ruling directly impacts the global trade landscape and market capital flows. The overturned tariffs represent approximately 75% of the Trump administration's total tariffs planned for 2025, with only the power to impose tariffs on specific goods such as automobiles and steel retained under the Trade Expansion Act. Independent metals trader Tai Wong stated, "On the surface, the Supreme Court ruling eliminates much of the uncertainty surrounding Trump's tariffs (and his ability to impose tariffs arbitrarily), which is good for the stock market and bad for gold." "However, it's hard to imagine the president stopping there; he will try to use other laws to reinstate tariffs, which will exacerbate market volatility. Therefore, while uncertainty may decrease in the short term, it won't hinder gold bulls in the medium term." In fact, Trump has publicly called the ruling "shameful" and clearly stated that he has backup plans. The White House has also indicated that it will immediately begin to reinstate tariffs after the ruling. The market widely expects him to reinstate targeted tariffs through other legal grounds such as the Trade Expansion Act. The continued tug-of-war on trade policy has become an important support for the safe-haven demand for gold. Following the Supreme Court ruling, major Wall Street stock indices rose sharply on Friday, and the game between risk assets and safe-haven assets further boosted gold trading activity.
Economic data reveals stagflation concerns, and the impact of Fed policy expectations is weakening. Data shows that, affected by both the government shutdown and weak consumer spending, the US economy is projected to grow sharply to an annualized rate of 1.4% in the fourth quarter of 2025, far below economists' forecasts of 3%, and a precipitous drop from the 4.4% growth rate in the third quarter. Furthermore, the Federal Reserve's preferred inflation gauge—the Personal Consumption Expenditures Index—rose 0.4% month-on-month in December, higher than the previously expected 0.3% increase, and its year-on-year increase reached 3.0%, continuing to exceed the Fed's 2% policy target. The sticky inflation and weak economic growth, coupled with concerns about stagflation, have heightened market anxieties about the fundamentals of the US economy. Bob Habercohn, senior market strategist at RJO Futures, stated, "Market inflation remains... but the slowing GDP growth indicates the economy is not yet near a turning point. Many unknowns and uncertainties remain in the US economy, which supports gold." It's worth noting that despite strong inflation data, the reality of a weak economy has not changed market expectations for a Fed rate cut. Traders still anticipate two 25-basis-point rate cuts this year, with the first expected in June. However, compared to the dual uncertainties of economic fundamentals and trade policy, the impact of Fed policy expectations on gold prices has significantly weakened.
The safe-haven appeal of gold has been activated, leading to a collective rise in precious metals. Against the backdrop of an uncertain economic outlook and significant changes in trade policy, gold's safe-haven appeal has been continuously activated. This is the core reason why it has been able to independently strengthen despite rising US stocks and short-term dollar fluctuations, rather than being solely driven by expectations of a Fed rate cut. Furthermore, in an environment where interest rates remain relatively high for an extended period and economic uncertainty intensifies, gold's asset allocation value is further highlighted.
This is not financial advice. Always verify current prices and conduct independent research.
#XAUUSD #GOLD #Fed $XAU $PAXG

US GDP just fell to 1.4% while inflation is rising again.

US GDP was expected to come in at 3% but it came in at just 1.4%.

That is a major downside surprise and shows that economic growth has slowed much more than markets were expecting.

One key reason behind this slowdown was the government shutdown in Q4 which lasted for nearly 1.5 months. That directly impacted output, spending, and overall activity, which pulled GDP lower.

But that is only one side of the story. At the same time, inflation data showed an increase.

PCE inflation came in at 2.9%, the highest level since March 2024.
Core PCE rose to 3%, the highest level since April 2024.

This is important because PCE is the Federal Reserve’s preferred measure of inflation. Even though CPI and core #cpi have been trending down recently, the PCE numbers show that the cost of goods and services is still rising inside the economy.

So now we have a difficult situation. On one side, growth is slowing. GDP is much weaker than expected. Economic activity is losing momentum, and job losses are increasing.

On the other side, inflation in goods and services is not fully under control. Prices are still rising at a pace that is above the Fed’s target.

This creates pressure on consumers.

If growth slows while prices continue rising, households face more difficulty managing expenses. Income growth does not keep up with the cost of living, and financial stress increases.

Now the Federal Reserve faces a clear dilemma.

If the Fed cuts rates quickly and injects liquidity into the system, it could help support GDP growth and improve the job market. Lower rates make borrowing cheaper and can boost spending and investment.

However, if inflation is still elevated, cutting rates too early could push prices higher again. That would make the inflation problem worse.

If the #Fed keeps rates high and stays on pause, inflation may cool further. But slower growth could turn into deeper weakness. GDP could weaken more, and the labor market could deteriorate further.

So right now, the Fed is stuck between two risks:

Cut rates and risk higher inflation.
Hold rates and risk deeper economic slowdown.

And that combination makes the next policy decision much more complicated than before.

Bitcoin and most altcoins, including popular names like Dogecoin, Shiba Inu Coin, and XRP, were in the green today, February 20, as investors bought the dip after some key catalysts.
$BTC jumped to $68,000, while $DOGE , $SHIB Coin and Ripple XRP rose by over 4%. The market capitalization of all tokens rose by 2.2% to over $2.3 trillion.
Dogecoin, Shiba Inu Coin, and XRP rose after the Supreme Court ruling 
The main reason why altcoins like #DOGE , #SHİB , and XRP rose is that the Supreme Court ruled against President Donald Trump’s tariffs.
In theory, the ruling will have a positive impact on the US economy by lowering inflation. Such a move raises the possibility that the Federal Reserve will cut interest rates, especially now that the recent data showed that the headline Consumer Price Index dropped in January.
In reality, however, the decision will not have a major impact as Trump has some backup strategies that he will use to implement tariffs on key countries like China, India, and those in the European Union. 
Weak US GDP data and impact on the Federal Reserve 
Bitcoin and other altcoins rose after the US published a weak #GDP report. According to the Bureau of Economic Analysis, the economy expanded by 1.4% in the fourth quarter, badly missing the expected 3%. 
The economic growth was much lower than the 4.4% experienced in the third quarter. This slowdown was mostly because of the prolonged government shutdown that happened during the quarter.
The weak economic report is bullish for cryptocurrencies because it raises the possibility that the #Fed will cut interest rates later this year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
#bullishleo