While the U.S. Federal Reserve ramped up the benchmark bank rate with a barrage of rate hikes, U.S. Treasury markets and global bond markets, in general, have seen one of the worst selloffs in over a decade. The Fed’s actions has fueled criticism toward the U.S. central bank as some strategists believe the onslaught of interest rate hikes could spur illiquidity in the world’s largest bond market. Moreover, a report published on Tuesday, explains that the Fed and foreign central banks worldwide are “losing billions” by paying more interest.
The U.S. Federal Reserve has increased the federal funds rate (FFR) on a number of occasions this year and three times in a row, the central bank raised the rate by 75 basis points (bps). The rate hikes have caused politicians and the investment bank Barclays to question the central bank’s need to slow down the rate hikes. Even the United Nations Conference on Trade and Development (UNCTAD) chimed in and urged the Fed to slow down and increase public spending.
Despite the requests, observers working closely with Fed members and markets suspect another 75bps rate hike is guaranteed to happen next month. On Tuesday, Bloomberg reported that, as of right now, the U.S. central bank is “losing billions.” Bloomberg contributor Jonnelle Marte says “without the income from the Fed, the Treasury then needs to sell more debt to the public to fund government spending.” Despite, the need to sell more debt the chief global economist for Morgan Stanley and former member of the U.S. Treasury, Seth Carpenter, insists the losses have no material effect on near-term monetary decisions.
Carpenter further stressed:
The losses don’t have a material effect on their ability to conduct monetary policy in the near term.
The Bloomberg reporter Marte tweeted that the “higher rates mean the central bank is now paying more interest on reserves than it collects from its portfolio.” Marte added that this situation could lead to “some political headaches.” “I won’t break out the accounting lingo, but the short version is that the Fed used to send its income to the Treasury,” Marte’s Twitter thread added. “Now that the Fed is losing money, the losses are piling up into an IOU that the Fed will pay later with future income.”
The Bloomberg reporter added:
Other central banks are also dealing with losses as rates go up around the world to combat inflation. The accounting losses threaten to fuel criticism of the asset purchase programs undertaken to rescue markets and economies.
The report that notes the Fed is losing billions and wreaking havoc on other central banks worldwide, follows a number of analysts insisting that the Fed is trapped because hiking the FFR too high could lead to “blowing up the Treasury.” The founder of the hedge fund Praetorian Capital, Harris Kupperman, said this could happen in a blog post published on October 18. J. Kim of skwealthacademy substack also predicts that a “U.S. Treasury bond market flash crash is inevitable under these market conditions.”
The experts Marte interviewed explained, however, that the U.S. central bank’s losses can be recapitalized. Jerome Haegeli, chief economist at Swiss Re told the Bloomberg reporter that despite the fact that it can always be recapitalized, central banks will face political criticism over the policy-making.
“The problem with central bank losses are not the losses per se — they can always be recapitalized — but the political backlash central banks are likely to increasingly face,” Haegeli said in a statement to Marte.
What do you think about the report that says the U.S. Federal Reserve and central banks worldwide are losing billions? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: Bloomberg
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Ripple CEO: SEC Lawsuit Over XRP 'Has Gone Exceedingly Well'
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.
While the U.S. Federal Reserve ramped up the benchmark bank rate with a barrage of rate hikes, U.S. Treasury markets and global bond markets, in general, have seen one of the worst selloffs in over a decade. The Fed’s actions has fueled criticism toward the U.S. central bank as some strategists believe the onslaught of interest rate hikes could spur illiquidity in the world’s largest bond market. Moreover, a report published on Tuesday, explains that the Fed and foreign central banks worldwide are “losing billions” by paying more interest.
The U.S. Federal Reserve has increased the federal funds rate (FFR) on a number of occasions this year and three times in a row, the central bank raised the rate by 75 basis points (bps). The rate hikes have caused politicians and the investment bank Barclays to question the central bank’s need to slow down the rate hikes. Even the United Nations Conference on Trade and Development (UNCTAD) chimed in and urged the Fed to slow down and increase public spending.
Despite the requests, observers working closely with Fed members and markets suspect another 75bps rate hike is guaranteed to happen next month. On Tuesday, Bloomberg reported that, as of right now, the U.S. central bank is “losing billions.” Bloomberg contributor Jonnelle Marte says “without the income from the Fed, the Treasury then needs to sell more debt to the public to fund government spending.” Despite, the need to sell more debt the chief global economist for Morgan Stanley and former member of the U.S. Treasury, Seth Carpenter, insists the losses have no material effect on near-term monetary decisions.
Carpenter further stressed:
The losses don’t have a material effect on their ability to conduct monetary policy in the near term.
The Bloomberg reporter Marte tweeted that the “higher rates mean the central bank is now paying more interest on reserves than it collects from its portfolio.” Marte added that this situation could lead to “some political headaches.” “I won’t break out the accounting lingo, but the short version is that the Fed used to send its income to the Treasury,” Marte’s Twitter thread added. “Now that the Fed is losing money, the losses are piling up into an IOU that the Fed will pay later with future income.”
The Bloomberg reporter added:
Other central banks are also dealing with losses as rates go up around the world to combat inflation. The accounting losses threaten to fuel criticism of the asset purchase programs undertaken to rescue markets and economies.
The report that notes the Fed is losing billions and wreaking havoc on other central banks worldwide, follows a number of analysts insisting that the Fed is trapped because hiking the FFR too high could lead to “blowing up the Treasury.” The founder of the hedge fund Praetorian Capital, Harris Kupperman, said this could happen in a blog post published on October 18. J. Kim of skwealthacademy substack also predicts that a “U.S. Treasury bond market flash crash is inevitable under these market conditions.”
The experts Marte interviewed explained, however, that the U.S. central bank’s losses can be recapitalized. Jerome Haegeli, chief economist at Swiss Re told the Bloomberg reporter that despite the fact that it can always be recapitalized, central banks will face political criticism over the policy-making.
“The problem with central bank losses are not the losses per se — they can always be recapitalized — but the political backlash central banks are likely to increasingly face,” Haegeli said in a statement to Marte.
What do you think about the report that says the U.S. Federal Reserve and central banks worldwide are losing billions? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: Bloomberg
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.
According to a recent report, members of the Saudi government and crown prince Mohammed bin Salman have been privately mocking U.S. president Joe Biden by questioning his keenness of thought and mental acuity. The report follows Biden’s recent trip to the region in July, when the U.S. president pressed the Saudis for more oil production, but the Saudi government refused his requests.
Saudi Arabia’s government doesn’t seem to like U.S. president Joe Biden, as a report from the Wall Street Journal (WSJ) shows crown prince Mohammed bin Salman and many others have mocked the American leader. Biden and vice president Kamala Harris were also made fun of on a television broadcast aired in Saudi Arabia. The Saudi television broadcast openly mocks Biden’s alleged cognitive decline and leverages the nickname “Sleepy Joe.”
Three reporters from the WSJ — Stephen Kalin, Summer Said, and Dion Nissenbaum — wrote on October 24, that unnamed members of the Saudi government say the prince and his team privately make fun of president Biden. “Saudi crown prince Mohammed bin Salman, the kingdom’s 37-year-old day-to-day ruler, mocks president Biden in private, making fun of the 79-year-old’s gaffes and questioning his mental acuity, according to people inside the Saudi government,” the WSJ reporters said.
The reporters added:
He has told advisers he hasn’t been impressed with Mr. Biden since his days as vice president, and much preferred former President Donald Trump, the people said.
The latest news report from the WSJ and the Saudi television broadcast openly mocking Biden follows Saudi Arabia’s request to join the BRICS nations. U.S. president Joe Biden was heavily criticized in America for his reasons to visit Saudi Arabia in July, as the American president traveled there to ask the crown prince to increase oil production. Reports noted that the Saudi government was not impressed by Biden because he wouldn’t shake the crown prince’s hand.
Instead, Biden opted to leverage a pandemic-inspired fist bump, and while the U.S. president begged for more oil production, he continued to mention the killing of Washington Post journalist Jamal Khashoggi. “I made my view crystal-clear,” Biden said at the time. “I said, very straightforwardly, for an American president to be silent on an issue of human rights is inconsistent with who we are and who I am.”
The crown prince of Saudi Arabia and the government flat-out refused Biden’s requests for more oil production. In fact, Saudi Arabia revealed a reduction in oil production, and the Saudi government has been very friendly with the members of the BRICS nations.
On October 24, when the White House press secretary Karine Jean-Pierre (KJP) was asked about the Saudi rulers privately making fun of the U.S. president’s mental acuity, KJP had nothing to say. “I don’t have any comments,” the White House press secretary replied to the reporter.
What do you think about the report that says the Saudi government and crown prince have been making fun of U.S. president Joe Biden? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: @Spa_Eng via Twitter, Youtube
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
According to a recent report, members of the Saudi government and crown prince Mohammed bin Salman have been privately mocking U.S. president Joe Biden by questioning his keenness of thought and mental acuity. The report follows Biden’s recent trip to the region in July, when the U.S. president pressed the Saudis for more oil production, but the Saudi government refused his requests.
Saudi Arabia’s government doesn’t seem to like U.S. president Joe Biden, as a report from the Wall Street Journal (WSJ) shows crown prince Mohammed bin Salman and many others have mocked the American leader. Biden and vice president Kamala Harris were also made fun of on a television broadcast aired in Saudi Arabia. The Saudi television broadcast openly mocks Biden’s alleged cognitive decline and leverages the nickname “Sleepy Joe.”
Three reporters from the WSJ — Stephen Kalin, Summer Said, and Dion Nissenbaum — wrote on October 24, that unnamed members of the Saudi government say the prince and his team privately make fun of president Biden. “Saudi crown prince Mohammed bin Salman, the kingdom’s 37-year-old day-to-day ruler, mocks president Biden in private, making fun of the 79-year-old’s gaffes and questioning his mental acuity, according to people inside the Saudi government,” the WSJ reporters said.
The reporters added:
He has told advisers he hasn’t been impressed with Mr. Biden since his days as vice president, and much preferred former President Donald Trump, the people said.
The latest news report from the WSJ and the Saudi television broadcast openly mocking Biden follows Saudi Arabia’s request to join the BRICS nations. U.S. president Joe Biden was heavily criticized in America for his reasons to visit Saudi Arabia in July, as the American president traveled there to ask the crown prince to increase oil production. Reports noted that the Saudi government was not impressed by Biden because he wouldn’t shake the crown prince’s hand.
Instead, Biden opted to leverage a pandemic-inspired fist bump, and while the U.S. president begged for more oil production, he continued to mention the killing of Washington Post journalist Jamal Khashoggi. “I made my view crystal-clear,” Biden said at the time. “I said, very straightforwardly, for an American president to be silent on an issue of human rights is inconsistent with who we are and who I am.”
The crown prince of Saudi Arabia and the government flat-out refused Biden’s requests for more oil production. In fact, Saudi Arabia revealed a reduction in oil production, and the Saudi government has been very friendly with the members of the BRICS nations.
On October 24, when the White House press secretary Karine Jean-Pierre (KJP) was asked about the Saudi rulers privately making fun of the U.S. president’s mental acuity, KJP had nothing to say. “I don’t have any comments,” the White House press secretary replied to the reporter.
What do you think about the report that says the Saudi government and crown prince have been making fun of U.S. president Joe Biden? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: @Spa_Eng via Twitter, Youtube
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
PRESS RELEASE. 25 October 2022: Today, the formation of a new entertainment PLC EMERGENT ENTERTAINMENT is announced.
Emergent Entertainment officially merges London-based video game studio Maze Theory with blockchain veterans and developers Pluto Digital PLC, following a successful joint venture between the two companies (Emergent Games) earlier this year.
Emergent Entertainment is a next generation entertainment company focused on bringing audiences and storytellers together by harnessing emerging technologies. The proposed valuation of the new business exceeds $65 million, and the company intends to prepare for a future IPO event.
Former Executive Vice President of Sony Interactive Entertainment/PlayStation, Simon Rutter, joins the business as Chairman, alongside CEO Ian Hambleton (former CEO of Maze Theory).
Simon spent 25 years at PlayStation, with the last 10 years in senior international leadership roles. Ian is a successful entrepreneur of 20 years, having founded and grown creative businesses across tech, digital, gaming and green tech with Found Studio, Maze Theory and Ecologi.
Chairman Simon Rutter, and former Executive Vice President Sony PlayStation.
Emergent Entertainment benefits from the combined legacy of the two merged entities, the skills and experience of its employees, and its existing product portfolio and asset base. Together, these elements provide the company with a unique set of competencies to successfully deliver engaging content such as mixed reality gaming, Web3 gaming and Web3 token services in a range of entertainment media.
The new company will balance the traditional and the new; storytelling craft with technical innovation; and established, reliable business models with more contemporary forms of monetisation.
With more than 60 developers and executives with extensive experience building AAA games, the game studio has four centuries worth of combined knowledge. Their aggregated CV includes: FIFA, NBA Online, The Sims, Need for Speed, Gran Turismo, Lord of the Rings, Horizon Zero Dawn, Sniper Elite, Peaky Blinders: The King’s Ransom, Doctor Who: Edge of Time, Blood and Truth, and PlayStation VR Worlds.
Emergent Entertainment has already inked deals with several global entertainment properties, drawing on its expertise in making VR games for iconic shows such as Doctor Who and Peaky Blinders, with more VR game announcements to follow.
The company’s first Web3 project, Resurgence, is currently in development and takes players on a journey from present day disaster to a post-apocalyptic future. The game gives players complete control to craft their own destiny by utilising resources in a unique community-based survival concept.
Emergent Entertainment Chairman, Simon Rutter, says: “The Emergent Entertainment leadership team is passionate about the creative opportunities offered by the latest technological innovations.”
CEO Ian Hambleton adds: “We are excited to bring together AAA game creators and advanced Web3 engineering skills in a way that hasn’t yet been seen. We are laser focused on delivering the best games and experiences using technology that truly benefits players and new audiences.”
About Emergent Entertainment
Emergent Entertainment PLC is a next generation entertainment company; and the official merger of London based video game studio Maze Theory and web3 technology company, Pluto Digital PLC. It brings storytellers and their audiences closer together by harnessing new technologies including VR, AR, AI and blockchain.
The business is led by CEO, Ian Hambleton, serial entrepreneur and former CEO of Maze Theory and Exec Chairman, Simon Rutter, former Executive Vice President of Sony PlayStation.
Emergent Entertainment will deliver engaging content including mixed reality gaming, Web3 gaming and Web3 token services in a range of entertainment genres.
Its first Web3 game, Resurgence, is in development and it has signed deals with a number of global entertainment properties, drawing on Maze Theory’s expertise in making VR games for iconic shows such as Doctor Who and Peaky Blinders.
With more than 60 developers and executives with extensive experience building AAA games, the game studio has four centuries worth of combined knowledge.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on ads@bitcoin.com to talk about press releases, sponsored posts, podcasts and other options.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals
A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.
Source From : News