Connect with us

Markets

Fintech CEO: Markets Brace for Fed

Published

on

San Francisco Federal Reserve Bank President Mary Daly has released statements that the Fed should aim to get interest rates up to 2.5% as quickly as possible, including a pair of 50-basis-point hikes. The goal is to bring the economy to a place where the interest rate is not stimulating growth in order to stem the major inflation the economy is seeing.

“You have an election around the corner, inflation spiking out of control, an unstable geopolitical climate in Eastern Europe, and a weak supply chain from continued Covid-related lockdowns. That’s causing gas, electricity, and basic foodstuffs to spike, and it is hurting Americans of every political and ideological stripe. There’s a lot of public outcry to tamp down inflation,” said Gardner.

“I see a couple of 50-basis-point hikes immediately in the next couple of meetings to get there. And then we need to look around and see what else is going on,” Daly said in an interview.

“2% is the goal for inflation, and they’re clearly missing the mark. So, they’re trying to land the economy evenly, almost as you would attempt to land a plane in a windstorm. There’s a lot of turbulence, and you want to slow down the plane without crashing it. That’s the goal, is to slow down the economy so that the supply chain catches up with demand — and they want to do it with as little chaos as possible,” said Gardner.

“However, anybody watching the markets feels the chaos — chaos just from anticipation, at this point. The Fed may have to continue to raise interest rates in order to bring down inflation, so that’s going to scare investors. It already has scared investors,” offered Gardner. “So, when you’re hearing news about dips in the crypto world, that’s only half the story. Traditional markets are feeling the same kind of pain, and the vast majority of it stems from uncertainty and a lack of confidence in the market.”

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Nobody knows what’s coming. Not the experts. Not even the Fed. It’s possible that the economy begins to right itself quickly. It’s possible that it will undergo further pain. But, as those realities affect the cryptocurrency markets, it is important to keep perspective. A dip in digital assets isn’t a sign to bail. It is a sign to ensure that you’re invested in quality projects with long-term potential. Because, once the inflation is gone, the fundamentals still will survive that. I think that, as individual asset prices become more volatile, you’ll see greater interest in cryptocurrency derivatives, which can mitigate the risk coming from swings in any one asset. I think that’s a move you should watch for within the industry,” said Gardner.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Slide on Soft Demand and Pending Fed Interest Rate Decision

Published

on

markets energies crude oil

Oil prices saw a slight decrease on Wednesday following indications of weak demand and the anticipation of a crucial interest rate decision by the U.S. Federal Reserve.

Brent crude oil, which had risen almost 3% earlier in the week, fell by 0.40% to $75.02 a barrel, while U.S. West Texas Intermediate (WTI) crude oil was down 0.42% at $69.38.

Data from the American Petroleum Institute released on Tuesday put the demand for oil into question after revealing an unexpected increase in U.S. crude inventories, contradicting analyst predictions of a decline.

Oil prices were also impacted by an unexpected rise in UK inflation in February, raising concerns of more interest rate hikes a day before the Bank of England’s latest interest rate decision.

The global market is waiting to assess the decision of the U.S. Federal Open Market Committee (FOMC) on interest rates later today to decipher the future direction of price action.

While the expected 25 basis point rate hike was a turnaround from the previously anticipated 50 basis point rate rise, analysts predict that it won’t have a significant impact on oil prices.

Craig Erlam, senior market analyst at OANDA, said, “It would be a big shock if the Fed reverted back to larger rate hikes now considering everything that’s happened this past couple of weeks.”

Last week, Brent prices hit their lowest levels since 2021 on concerns that the drop in bank shares could lead to a global recession and reduced fuel demand.

Continue Reading

Energy

Nigeria Generates Only 5000MW, Depends on Generators for 75% Electricity –Report

Published

on

Power - Investors King

Nigeria circulates about 5000 megawatts for its over 200 million population leaving generator sets to supply 75 percent of electricity needed by its people, reports have shown.

Investors King gathered that generators supply about 25,000 megawatts of power compared to the 5000 megawatts supplied by the national grid.

The recent reports from the Society for Planet and Prosperity, GCA Capital Partners and Climate Advisers Network stated that Nigeria depends largely on diesel and petrol-powered generators for electricity.

The research firms revealed their findings on power supply and consumption on Monday during a press briefing in Abuja.

They harped on measures to ensure solution to the current power supply shortage in Nigeria, calling for action on the issued recommendations.

President, Society for Planet and Prosperity, Prof. Chukwumerije Okereke, said part of the 11 suggested measures is centered on improving the generation of electricity by the national grid.

“Number one measure is to increase the generation of electricity, both on-grid and off-grid. Nigeria currently generates about 5,000MW for a population of over 200 million people.

“5,000MW is about the amount of electricity that powers Heathrow Airport (London). South Africa generates 40 gigawatts (40,000MW). India, which we should be competing with, generates over 80GW (80,000MW),” he said.

According to him, lack of constant power supply cripples the economy as it discourages local and foreign investors from investing in the country. This in turn leads to an increase in the unemployment rate. 

Okereke stated that enhancing on-grid and off-grid power will significantly solve the issue of climate change and improve the economy.

Another measure mentioned was the extinction of generator sets of any kind as this will shift attention to the rapid growth of the national grid. 

“So we get nearly 75 percent of our electricity in this country through generators, which is one of the most polluting sources of electricity generation. Therefore, the elimination of diesel and petrol-powered generators is the second on the list that we have identified,” he said.

Speaking on how the use of generators can be halted, the Chief Executive, GCA Capital Partners, Obi Ugochukwu, noted that it could be done by massively increasing the power generation from renewable energy sources like solar, hydro, among others.

Continue Reading

Crude Oil

Investor Confidence Boosted by UBS-Credit Suisse Deal, Oil Prices Show Resilience

The deal eased investors confidence ahead of Federal Reserve meeting scheduled for tomorrow and boosted oil prices.

Published

on

Crude Oil - Investors King

Global oil prices rebounded slightly in the early hours of Tuesday as concerns over banking section issues subside following UBS-Credit Suisse successful deal.

The deal eased investors confidence ahead of Federal Reserve meeting scheduled for tomorrow and boosted oil prices.

Brent crude oil, against which Nigerian oil is priced, traded rose to $73.84 per barrel while the U.S. West Texas Intermediate (WTI) crude oil gained 9 cents to $67.73 a barrel. A rebound from $3 decline recorded in the previous session.

The announcement of the UBS-Credit Suisse deal was followed by major central banks, including the U.S. Federal Reserve and European Central Bank, indicating that they would enhance market liquidity and support other banks.

Furthermore, officials with the G7 stated that they were unlikely to revise a $60-per-barrel price cap on Russian oil as planned. The officials said EU countries’ ambassadors were told by the European Commission over the weekend there was no pressing desire among the group for an immediate review.

Looking ahead, OPEC+, which includes the world’s top oil exporting countries and allies including Russia, is set for a meeting on April 3. The group agreed in October to cut oil production targets by 2 million barrels per day until the end of 2023.

Overall, the UBS-Credit Suisse deal and central bank support has helped ease investor concerns and stabilize oil prices. However, the upcoming OPEC+ meeting will be closely watched for any potential changes to oil production targets.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending