Market Cheers Potential Fed Pause on Rate Hikes 😳

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Hope everyone had a great weekend.

Stock futures are on a wild ride, fueled by hopes of a Fed rate hike pause. S&P 500 futures climb 0.2%, Dow Jones futures rise by 0.1%, and Nasdaq-100 futures surge ahead by 0.5%. Will the Fed's decision meet traders' expectations?

Developing crypto news, we delve into the fascinating world of government-issued digital currency (CBDC) and the heated debate surrounding it. A recent poll by the Cato Institute reveals that Americans are split right down the middle on whether the Federal Reserve should introduce a CBDC. According to the poll, educating undecided Americans about potential abuses could sway their opinion. A staggering 74% would oppose a CBDC if it meant government control over spending, while 68% fear the monitoring of their transactions. Privacy matters.

Adding more to last week’s drama, the outspoken billionaire Mark Cuban recently called out the SEC for its unclear registration process for cryptocurrency firms. Alongside him, U.S. Senator Cynthia Lummis joins the chorus, demanding a robust legal framework to navigate the regulatory landscape.

Not sure if more government regulation is the answer, but transparency is key.

Here’s what we’ve BRRR’d:

• Market Cheers Potential Fed Pause on Rate Hikes

• Americans Reject CBDCs: Privacy and Control Concerns Mount'

• Mark Cuban Calls SEC's Crypto Registration Process a Cryptic Puzzle

Market Cheers Potential Fed Pause on Rate Hikes

• Stock futures rise on hopes of Fed rate pause: S&P 500 futures gained 0.2%, Dow Jones futures rose by 0.1%, and Nasdaq-100 futures advanced by 0.5%. Traders are optimistic that the Federal Reserve will refrain from raising interest rates at its policy meeting this week, leading to increased buying activity in the stock market.

• Fed commitment to control inflation: Traders have priced in a 76% probability of no rate hike at the upcoming meeting. Economists project a drop in the consumer price index, with inflation expected to decrease to a 4% annual rate in May, down from 4.9% in the previous month.

• Potential rally if Fed notes progress: Analysts believe that if the Fed acknowledges the progress made in curbing inflation and signals a potential pause in rate hikes in both June and July, it could serve as a signal for investors to enter the market. This could particularly benefit sectors that have been lagging behind due to inflation concerns.

• S&P 500 approaches 1-year high: The S&P 500 index closed at 4,298.86 on Friday, edging closer to its 52-week intraday peak of 4,325.28 recorded in August of the previous year. Traders are closely monitoring the 4,300 level as a key psychological and technical threshold. A decisive breakthrough above this level could fuel further upward momentum in the market.

• Upcoming Central banks meetings: Market participants are paying close attention to the central bank meetings of major economies, including the US Federal Reserve, Bank of Japan, and European Central Bank. Additionally, economic data releases from China, Japan, New Zealand, and other countries will provide insights into the global economic outlook and potential impacts on financial markets.

  CNBC

Americans Reject CBDCs: Privacy and Control Concerns Mount

• Americans divided on government-issued digital currency (CBDC): A poll by the Cato Institute reveals that 50% of Americans have no opinion on whether the Federal Reserve should introduce a CBDC. Among those with an opinion, 34% oppose its introduction, while only 16% support it.

• Concerns over control and privacy: The poll shows that if educated about potential abuses, undecided Americans may oppose a CBDC. Overwhelming majorities would oppose a CBDC if it meant government control over spending (74%) or monitoring of spending (68%), while 68% fear the abolition of physical cash and 65% worry about cyberattacks.

• Opposition to taxation and account freezing: The poll finds that 64% would oppose a CBDC if the government imposed taxes on those not spending during recessions, and 59% are against the possibility of the government freezing digital bank accounts of political protesters.

• Impact on private banks and businesses: Americans are marginally opposed (52%) to a CBDC if it leads some people to stop using private banks, potentially causing some banks to go out of business.

• Political candidates and public education: Ron DeSantis and Robert F. Kennedy Jr., currently in second place in the Republican and Democratic presidential primaries, are seen as anti-CBDC. The poll suggests the need for widespread education among Americans to raise awareness about the threats posed by a CBDC, as many people may be receptive to this message.

  RonPaulInstitute

Mark Cuban Calls SEC's Crypto Registration Process a Cryptic Puzzle

• Mark Cuban criticizes SEC's crypto process: Billionaire investor Mark Cuban calls out the SEC for failing to provide a clear process for cryptocurrency firms. Argues that the SEC's "Framework for 'Investment Contract' Analysis of Digital Assets" document does not contain registration guidelines. Cuban suggests that the SEC should adopt a comments process to determine the security status of different aspects of crypto.

• Criticism for insufficient legal framework: U.S. Senator Cynthia Lummis joins the criticism against the SEC for not providing a robust legal framework for cryptocurrency firms. Lummis emphasizes the need for the SEC to offer legal guidance or a clearer regulatory framework to facilitate compliance. Without a proper legal framework, firms struggle to navigate compliance requirements and regulatory expectations.

• SEC accused of rejecting registration attempts: Coinbase and Robinhood claim that they attempted to register with the SEC but were rejected. SEC Chair Gary Gensler states that a registration process exists and firms "know how to register." The conflicting statements from the SEC and exchanges create confusion and raise questions about the effectiveness of the registration process.

• Lawsuits against Binance and Coinbase: The SEC sued Binance on June 5 and Coinbase on June 6, accusing both exchanges of breaking securities rules. Currently, 68 cryptocurrencies are considered securities by the SEC, indicating a heightened regulatory focus. Cuban points out that the SEC engages in a comments process rather than labeling "stock loans" as securities or suing brokers and banks.

  Cointelegraph

AI ART OF THE DAY

Today’s AI Art of the Day features Jerome Powell saying a prayer before tomorrow’s FOMC meeting. Hoping for answers…

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