The US Federal Reserve (FED) has released the ‘Beige Book’, which investors are waiting for clues. According to the book, “overall economic activity has increased slightly since the end of May.
FED releases highly anticipated Beige Book
The book says reports on consumer spending have been mixed. He also states that the growth is generally observed in consumer services. But he says some retailers are moving away from discretionary spending. The Beige Book will be used for the next FOMC meeting, July 25-26. The Fed states in the book that employment has risen moderately and prices have generally risen at a moderate pace. Besides, it is noteworthy that some Regions recorded a slight slowdown in their growth rate. Important takeaways from Beige Book:
- Business activities have expanded at a mild pace in recent weeks. It recorded modest increases in employment. Also, prices are more or less equalized. Retail sales rose moderately and tourism remained flat. Therefore, consumer spending increased by a small margin.
- Manufacturers reported mixed results. But sales growth was moderate on average.
- Housing sales showed a slight increase in May compared to the previous month. However, the season remained below normal.
- Among those outside real estate, the outlook was mostly optimistic.
- Employment rose moderately. In addition, wage growth continued to be moderate as the imbalances in the labor market decreased further.
- Wage growth rates continued to decline to more moderate levels. Therefore, wage pressures were defined as stable or, in most cases, declining.
- Cost pressures are further reduced. Therefore, prices remained mostly stable, with some exceptions.
- The outlook calls for further moderate price pressures going forward.
The US dollar fell sharply on Wednesday, heavily influenced by US inflation data. DXY fell more than 1% to its lowest level since April 2022.
Mike McGlon warns of potential risks to crypto
Bloomberg analyst Mike McGlone voices his concerns about the potential risks of cryptocurrencies during economic recessions. McGlone emphasizes that cryptocurrencies, including Bitcoin, are particularly vulnerable to these risks. In times of economic downturn, cryptocurrencies have become one of the riskiest assets. But McGlone says that of all digital assets, Bitcoin seems least worrisome. It also suggests that it can be more resilient and stable in turbulent economies.
cryptocoin.comAs you follow, cryptocurrencies have attracted attention as risky assets during recessions due to challenging market conditions and low interest rates resulting from central bank liquidity injections. McGlone’s observation highlights the vulnerability of cryptocurrencies to market fluctuations during economic contractions.
Many people see Bitcoin as a hedge against general financial market fluctuations. Its performance during recessions is closely tied to Federal Reserve interest rate decisions and other economic factors affecting the cryptocurrency market.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.