Good Morning Everyone!
Prices as of 4 pm EST, 9/21/22; % YTD
MARKET UPDATE
Fed lifted interest rates by expected 75bps
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Third consecutive 75bps hike
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Powell signaled more to come
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Comments more hawkish than expected
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“The chances of a soft landing are likely to diminish to the extent that policy needs to be more restrictive, or restrictive for longer”
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Current: 3.00-3.25%
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Median forecast has rates hitting 4.4% by end of 2022, 4.6% in 2023
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New Dot Plot:
Bond Market reaction
US Q2 Current Account – deficit narrows
Initial jobless claims – labor market still strong
10 am EST – Conference Board Leading Economic Index (LEI)
Crude $83
Earnings
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Accenture ACN
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Darden Restaurants DRI
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FactSet FDS
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Manchester United MANU
CRYPTO UPDATE
Stablecoin regulations: US vs. EU
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In the US, new bill would criminalize creation/issuance of algorithmic stablecoins (think Terra LUNC/USD)
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Panel could vote as early as this week
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Some existing stablecoins concerned, uncertain if they fall in this category
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In the EU, new draft of the markets in crypto-assets (MiCA) regulation removes limitations on stablecoins
Lockstep: Bitcoin and S&P 500
MEME OF THE DAY