KEYTAKEAWAYS
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The Fed holds rates at 4.25%–4.50%, signaling two cuts in 2025, with markets pricing in a likely September reduction.
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Trump intensifies pressure on Powell, calling him “Mr. Too Late” and urging rate cuts to support his economic agenda.
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JD.com plans to launch a stablecoin by Q4 2025, pending HKMA approval, aiming for cross-border and retail use.
CONTENT
FED HOLDS RATES, SIGNALS TWO CUTS IN 2025
The U.S. Federal Reserve kept interest rates steady at 4.25%-4.50%, marking the fourth consecutive meeting without change. The dot plot still reflects expectations of two rate cuts in 2025, while rate futures now indicate a 71% probability of a September cut, up from 60%.
Analysis:
The decision aligns with market expectations, offering short-term policy clarity for risk assets. However, the Fed’s cautious tone and stable dot plot signal that tight monetary conditions may persist longer, limiting upside momentum despite rising hopes for easing.
TRUMP BLASTS POWELL AGAIN, CALLS HIM “MR. TOO LATE”
On June 19, Donald Trump criticized Fed Chair Jerome Powell on Truth Social, calling him “Mr. Too Late” and blaming him for economic damage.
He reposted an article suggesting Powell should resign if he refuses to cut rates. The remarks continue Trump’s public campaign to pressure the Fed into easing policy during his second term.
Analysis:
Trump’s repeated attacks highlight growing political tension over Fed policy. His rhetoric challenges the Fed’s independence and could influence market perception—especially if paired with tariffs and other inflationary policies.
Still, Powell has reaffirmed that decisions will remain data-driven, not politically influenced.
JD.COM EXPECTS STABLECOIN LICENSE BY Q4 2025
JD.com confirmed its plans to launch a stablecoin as early as Q4 2025, pending approval from Hong Kong’s HKMA.
The company aims to issue a public-chain stablecoin pegged to HKD or USD, with transparent issuance data. JD’s blockchain arm was part of HKMA’s initial sandbox group and is now in Phase 2 testing, exploring cross-border and retail payment scenarios.
Analysis:
JD’s entry into the stablecoin space signals increased interest from Chinese tech giants in regulated digital finance.
With Hong Kong’s new Stablecoin Bill taking effect on August 1, JD’s efforts align with growing regulatory clarity and could position it as a key player in Asia’s digital payment infrastructure.
