Wednesday's Markets Update (July 26, 2023)

27 Jul 2023 by rate3

On Wednesday, the FOMC raised interest rates to the highest level in 22 years. However, Powell's comments were seen as a sign that the Fed is leaning towards a more dovish monetary policy. In response, the NASDAQ went volatile, while BTC continued its attempt to recover after Monday's plunge below 29K. Other news: the House Financial Services Committee has approved an act and a bill considered to be favorable for the crypto industry by media; UK car production is highest in 2 years.

Details: The Fed raised interest rates by 25 basis points to 5.25%-5.5%. This is the highest level since January 2001. They said that Fed will continue to monitor the economy and adjust rates as needed and will take into account a wide range of factors, including labor market conditions, inflation pressures, and financial developments.

Crypto
The House Financial Services Committee has approved a pair of bipartisan pieces of legislation for the crypto industry in the United States. The legislation aims to set out clearer rules for the crypto industry in the United States. The approval of these bills is being considered a "huge win" for the US crypto industry. Among them, the Blockchain Regulatory Certainty Act will "clear things up by affirming to the blockchain community that if you don’t custody customer funds, you are not a money transmitter," according to Rep. Tom Emmer (R-MN). Rep. Maxine Waters (D-CA), the ranking Democrat on the committee, has criticized the Digital Assets Market Structure bill, saying that it "too closely heeds the calls of the crypto industry."

Macroeconomics
UK: The car production up 16% in June, highest in 2 years. UK car production increased 16.2% in June 2023, the highest level in two years. This was the fifth consecutive month of growth. Manufacturers were able to manage global supply chain challenges, notably the shortage of semiconductors. Exports increased 13.6%, while domestic sales rose 4.5%. The EU remained the biggest market, followed by the US, China, Japan, and Australia. Production of electrified vehicles increased 71.6%, representing 37.8% of all cars produced so far this year.