Mixed Signals from Fed Members
- Chicago Fed President Austan Goolsbee said he opposed the latest 25 basis point rate cut and that no further action should be taken until more data is collected. Goolsbee emphasized that companies and consumers still have serious pricing concerns.
- Philadelphia Fed President Paterson, on the other hand, stated that his focus was on the labor market and that the current policy would continue to bring inflation down to the 2% target. Paterson noted that the risk of labor weakness was more dominant in the short term.
- Fed official Schmid said that the labor market had cooled but remained balanced, and that inflation was still high.
People’s Bank of China – Flexible Monetary Policy and Emphasis on Liquidity
The People’s Bank of China announced that monetary policy tools would be used flexibly to ensure economic stability and reasonable price increases. At the meeting, it was stated that reserve requirement and interest rate cuts would be implemented when necessary. The goal is to maintain ample liquidity and keep total financing costs low. The bank emphasized that support for the real economy will be increased. The same statement indicated that the reform of the financial supply structure needs to be accelerated.
Money Supply and Credit Expansion Increase in the Chinese Economy
China’s M2 money supply increased by 8% on an annual basis, while M1 rose by 4.9%. Total financing volume reached 440 trillion yuan at the end of November. The balance of government bonds increased by 18.8% annually to 94.24 trillion yuan. The RMB credit volume grew by 6.3% year-on-year to 267.42 trillion yuan. All these data indicate that credit expansion continues in China.
Disclosure Requirement for Artificial Intelligence Ads in New York
New York has passed the first law in the US requiring disclosure when characters generated by artificial intelligence are used in advertisements. This regulation aims to increase transparency and prevent consumer deception. However, it conflicts with Trump’s executive order threatening to cut funding to states that tighten AI regulations. This has created a power struggle between federal and state authorities. It remains to be seen whether the law will set an example for other states.
Commerzbank: Hassett’s Excessively Dovish Stance Could Weaken the Dollar
Commerzbank analyst Volkmar Baur said that if Hassett, a leading candidate for Fed chair, pushes for interest rate cuts regardless of the support base, the dollar could come under pressure. Hassett has argued that the Fed is “too late” with interest rate cuts. However, data shows that the labor market is only cooling slowly and does not support aggressive cuts. Baur noted that Hassett may not back down in the face of facts. This situation could create volatility in the currency markets.
Reserve Bank of India: Stablecoins Have a Limited Role
The deputy governor of the Reserve Bank of India stated that stablecoins have an extremely limited role in a transaction-focused economy. He emphasized that the use of stablecoins could increase the risk of dollarization. Regulators argue that the national payment infrastructure is already strong. Therefore, it is believed that the adoption of stablecoins would not provide any additional contribution to the country’s economy. India’s acceleration of its CBDC efforts also supports this approach.
BBVA Expands AI Partnership with OpenAI
Spanish bank BBVA announced a multi-year strategic partnership with OpenAI to offer ChatGPT Enterprise to its 120,000 employees. The bank plans to use AI to improve customer experience and optimize internal processes. This step demonstrates the acceleration of AI integration in global banking. Furthermore, the goal is to incorporate AI solutions into broader workflows. BBVA aims to strengthen its position as a leader in technological transformation within the sector.
Tether is planning a share offering to raise up to $20 billion. The company is considering tokenizing these assets after the share sale. According to sources, the current share buyback program is also on the table as part of the plan. Tether’s tokenization strategy could enable the direct storage of company assets on the blockchain. This initiative could start a new wave of tokenization on the corporate side.
Synthetix – Returning to the Ethereum Mainnet on December 17
Synthetix announced that it will officially return to the Ethereum mainnet on December 17. With the launch, the Synthetix Liquidity Provider (SLP) will also be activated. SLP access will initially be limited to a whitelist and will later be opened to all users. This return aims to strengthen the protocol’s liquidity structure. The Synthetix community sees this step as the beginning of a new growth phase.
RaveDAO – $25 Million Volume on First Day, 250% Yield
RaveDAO reached $25 million in trading volume on its first day after listing on Binance Alpha. Genesis Membership Card holders earned up to 250% returns. This performance demonstrates strong community interest. RaveDAO’s on-chain volume quickly reached a remarkable level. The project is considered to have gained significant momentum in its early stages.
dYdX – Social Login Feature Active
dYdX announced a new social login feature that allows users to log in with Google, Apple, or email. This feature allows users to create a self-hosted wallet for free. The platform aims to reach a wider user base with this feature. Social login significantly simplifies the onboarding process. dYdX states that the new feature makes the user experience more accessible.
