Federal Reserve – FOMC Meeting Update (May 7, 2025)
1. Interest Rate Decision: On May 7, 2025, the Federal Reserve kept the federal funds rate unchanged at 4.25%–4.50%. This decision reflects ongoing concerns about inflation, which remains above the Fed’s 2% target.
2. Inflation Status: The Core PCE index, the Fed’s preferred inflation gauge, held steady at 2.6%, showing no significant progress toward the 2% goal.
3. Labor Market: The U.S. economy added 177,000 jobs in April, indicating continued strength in the labor market despite slowing GDP growth.
4. GDP Performance: In Q1 2025, the U.S. GDP contracted by 0.3%, influenced by trade uncertainties and global economic pressures.
5. Jerome Powell’s Statement: Fed Chair Jerome Powell emphasized a “data-dependent” approach, stating that interest rate cuts will only be considered once inflation shows a consistent decline toward 2%.
6. Market Outlook: Analysts predict a possible rate cut in July 2025, depending on upcoming inflation and job data. The CME FedWatch Tool shows increased expectations for mid-year policy easing.
The MEME Act (Modern Emoluments and Malfeasance Enforcement Act) is a proposed U.S. law introduced to prohibit the President, Vice President, members of Congress, and senior federal officials — as well as their family members — from issuing, sponsoring, or endorsing cryptocurrencies such as meme coins or stablecoins.
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Key Highlights:
Introduced By: Senator Chris Murphy (D-CT) on May 6, 2025.
Purpose: To prevent federal officials from financially benefiting from cryptocurrency assets during their term in office.
Background: Former President Donald Trump and Melania Trump launched meme coins $TRUMP and $MELANIA, allegedly generating over $100 million in profits.
Concerns Raised: The $TRUMP coin included exclusive perks like White House dinners and VIP meetings, raising ethical and national security concerns.
Scope of the Law: Applies to:
President & Vice President
Members of Congress
Cabinet-level officials
Their immediate family Violations could result in civil or criminal penalties.
On May 5, 2025, the U.S. House Financial Services and Agriculture Committees released a new draft of the “Digital Asset Market Structure Act.” This draft aims to create a clear and comprehensive regulatory framework for cryptocurrencies and other digital assets.
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Key Highlights:
Regulatory Division: The draft proposes a clear division of responsibilities between the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission).
Centralized digital assets would be regulated by the SEC.
Fully decentralized assets would fall under the CFTC’s oversight.
Definition of Digital Commodities: Digital assets that do not provide ownership rights or profit-sharing to users are defined as "digital commodities" and would be exempt from SEC securities rules.
Retail Investor Access: The draft removes income and wealth restrictions for retail investors, making it easier for regular individuals to invest in digital assets.
Decentralization Test: A blockchain network will be considered decentralized if less than 90% of the tokens are held under any single control. Such networks would be regulated by the CFTC.
Political Opposition: Democratic leader Rep. Maxine Waters is blocking a joint hearing on this draft due to concerns about former President Trump’s influence on crypto regulation.
Michael Saylor ka Naya Bitcoin Purchase (May 2025 Update):
Company: Strategy (pehle MicroStrategy)
Date: 5 May 2025 $BTC
Nayi Kharidaari: 1,895 Bitcoins
Total Price: $180.3 million
Average Price per BTC: $95,167
$BTC Ab Total Holdings:
Total Bitcoins: 555,450 BTC
Total Investment: $38 billion+
Average Cost: $68,550 per BTC
Market Value: $53 billion+
Global Supply ka Approx 2.64% Strategy ke paas hai
$BTC Saylor ka Bayan: Michael Saylor ne Strategy World 2025 conference mein kaha ke jaise Microsoft jaise companies stock buyback ke bajaye Bitcoin mein invest karein.