Fed faces dilemma as Trump’s tariffs create stagflation risks, complicating rate decisions ahead of May FOMC meeting.
Futu Securities tests crypto deposits, signaling mainstream adoption with USDT/USDC support for stock investments.
U.S. Treasury opposes Fed CBDC, prioritizing debt-to-GDP stability over digital currency innovation.
FED UNLIKELY TO CUT RATES IN MAY
On May 7, Wall Street Journal reporter Nick Timiraos, often called the “Fed whisperer,” wrote that Trump’s chaotic tariff policies are putting the Federal Reserve in a tough spot: Should it fight recession or tackle stagflation?
The Fed’s two-day policy meeting this week will focus on how to communicate carefully amid this dilemma.
Analysis:
Trump’s messy tariff moves are disrupting supply chains, increasing costs, and pushing inflation higher — all while slowing down economic growth.
This puts the Fed in a difficult position between recession risks and stagflation fears. Their May FOMC meeting will likely be about managing expectations.
Timiraos has been known for accurately predicting Fed rate decisions since 2022, and his reports often move markets.
FUTU SECURITIES TESTING CRYPTO DEPOSIT FEATURE
On May 7, crypto KOL @_FORAB revealed that Futu Securities is internally testing a crypto deposit function. An official announcement may come soon.
The feature will initially support deposits in stablecoins like USDT and USDC, allowing users to invest in U.S., Hong Kong, and Japanese stocks. The crypto option will be added to the existing all-in-one account, making it easy to use.
Analysis:
Futu’s move to support crypto deposits signals a breakthrough in traditional finance. It shows growing recognition of crypto assets as legitimate by mainstream institutions.
U.S. TREASURY SECRETARY OPPOSES FED-ISSUED DIGITAL CURRENCY
On May 6, U.S. Treasury Secretary Bessent said she does not support the idea of a central bank digital currency (CBDC) issued by the Federal Reserve.
“It’s hard to know when the market might turn on our debt,” she said. “We’re working to control the total debt level and boost GDP. I agree with Secretary Yellen that the debt-to-GDP ratio is the key measure.”
Analysis:
Bessent highlighted the debt-to-GDP ratio (133%) as more important than the total debt figure ($36 trillion), echoing Yellen’s 2024 warning that the debt path is unsustainable. This suggests the Treasury is prioritizing economic stability over financial innovation like a digital dollar.
〈CoinRank Crypto Digest (5/07)｜Futu Securities Testing Crypto Deposit Feature〉這篇文章最早發佈於《CoinRank》。
