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Microsoft (MSFT.O) reported revenue of $82.9 billion for Q3 of fiscal year 2026, compared to $70.066 billion in the same period last year and market expectations of $81.36 billion.On April 30th, it was reported that Jerome Powells decision to remain on the Federal Reserve Board of Governors after his term as Chairman ended is uncommon, but not unprecedented. Most modern Fed Chairs leave the Board after their terms expire. Powells predecessor, Janet Yellen, left the Fed in 2018 to join the Brookings Institution, and was subsequently appointed as Bidens Treasury Secretary in 2020. The only exception is Eccles, who served as Fed Chair from 1934 to 1948, and remained on the Board for another three years. Eccles played a key role in the clash with Truman over the extent of the White Houses power in setting interest rates, a confrontation that ultimately ensured the Feds modern independence. Powell has not shied away from addressing the political pressures facing the Fed during his tenure. He made it clear on Wednesday that his decision to remain was not due to any politicians verbal attacks, but rather a result of legal action against the Fed.April 30th - According to CMEs "FedWatch": The probability of the Federal Reserve maintaining interest rates unchanged by June is 98.6% (98.8% before the decision), and the probability of a cumulative rate cut of 25 basis points is 1.4% (1.2% before the decision). The probability of the Federal Reserve maintaining interest rates unchanged by July is 96.5% (94.6% before the decision), and the probability of a cumulative rate cut of 25 basis points is 3.4% (5.4% before the decision). The probability of the Federal Reserve maintaining interest rates unchanged by September is 96.1% (92.7% before the decision), and the probability of a cumulative rate cut of 25 basis points is 3.8% (7.2% before the decision).On April 30th, Federal Reserve Chairman Jerome Powell stated that he would continue serving as a governor after his term as chairman ends in order to help stabilize the Fed before political pressure subsides. "I will stay as long as I feel it is appropriate to remain," Powell said at a press conference. He added, "I dont want to be some kind of high-profile dissident or anything like that."FOMC Statement: 1. Statement Overview: The benchmark interest rate was maintained at 3.50%-3.75%; Milan voted for a 25 basis point cut; Hammark, Kashkari, and Logan voted against the "dodging hints" in the policy statement, marking the largest number of dissenting votes at a meeting since October 1992. 2. Interest Rate Outlook: The potentially accommodative language was retained, indicating that the latest information will be carefully assessed when considering the magnitude and timing of "further" adjustments to interest rates. 3. Inflation Outlook: Inflation was described as "high," compared to "slightly high" in the previous statement, and the impact of global energy prices was noted. 4. Economic Outlook: Developments in the Middle East have increased uncertainty about the economic outlook. Job growth has been generally weak. Powells Press Conference: 1. Interest Rate Outlook: In a good position; the number of officials supporting a shift to a neutral bias has increased; a change in the current accommodative stance may be considered at the next meeting; no one is currently calling for a rate hike, and those who disagree with the accommodative stance are not inclined to raise rates; if a rate hike or cut is needed, signals will be sent and action taken; energy and tariff issues need to be observed before considering a rate cut. 2. Inflation Outlook: Inflation is high, with recent inflation expectations rising, partly reflecting rising energy prices; the surge in energy inflation has not yet peaked; the prospect of rising core inflation is realistic; core PCE inflation is projected at 3.2%; tariff inflation should slow this year. 3. Economic Outlook: Economic activity is expanding robustly, but events in the Middle East have increased uncertainty, making the economic outlook highly uncertain. Labor demand has weakened, while showing increasing signs of stabilization. 4. Retirement: After stepping down as chairman, he will continue to serve as a governor in a low-profile capacity for an undetermined period, and will leave the Fed at an appropriate time; he had intended to retire, but government actions left him with no other choice; he will not become a shadow chairman. 5. Market Reaction: From the release of the statement to the end of Powells speech, most asset classes saw minimal movement, with gold fluctuating by $35, 2-year Treasury bonds rising by 2 basis points, and interest rate futures pricing in a full-year rate cut at around 1.5 basis points.

U.S. Senate grills SEC’s Gensler over climate rule, crypto stance

Jimmy Khan

Sep 16, 2022 14:39

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Before the U.S. Senate Banking Committee on Thursday, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler defended his organization's stance on cryptocurrencies and its drive to include climate risks in public business disclosures.


Although Gensler testified before the panel as part of its routine oversight responsibilities, Republicans are now upset with his agenda. They contend that he has overstepped his bounds by launching an extensive attack on American capital markets and taking a hostile approach against the banking sector.


Gensler, though, emphasized that his new standards are essential to ensure that the American capital markets continue to be the world's "gold standard" in prepared comments made public before to the hearing.


Sherrod Brown, a Democrat, praised Gensler's comprehensive plan. He said, "If Wall Street and its friends are whining, you're definitely doing your job."


A proposed SEC regulation requiring public corporations to report risks connected to climate change, including greenhouse gas emissions, has Republicans particularly worried. Corporate organizations claim it is burdensome and goes beyond the agency's power.


The committee's senior Republican, Pat Toomey, warned in his opening comments that "the expense of compliance will be more substantial to the investor than the information itself."


In light of a recent Supreme Court decision to limit the jurisdiction of the Environmental Protection Agency, which some legal experts claim threatens the SEC's authority on its climate regulation, he also cautioned that the SEC should be "nervous" about legal challenges.


The Democratic U.S. Senator from Montana, Jon Tester, has expressed worry about the possible effects of the climate rule on small company owners, such as farmers, who would be caught up in its demand that public businesses report emissions in their supplier networks.


However, Gensler said in his statement that the rule would provide much-needed uniformity and clarity to a matter that was essential to investors but was being reported by various firms under different frameworks, and he subsequently noted that the agency was taking all comments into consideration.

Criticisms of cryptocurrencies

Republicans pressed Gensler on cryptocurrency supervision as well because of what they saw as his increasingly hardline position.


When he suggested that cryptocurrency firms would need numerous SEC registrations and divide their activities into other legal organizations, Gensler made headlines last week.


Such "disaggregation," according to Gensler, might strengthen investor protections and prevent conflicts of interest. Instructing Congress to avoid unintentionally undermining current investor safeguards while drafting cryptocurrency legislation, he also said that SEC staff was collaborating with conventional market intermediaries interested in joining the cryptocurrency industry.


Toomey, however, claimed that the SEC had not given the cryptocurrency market any regulatory clarity and charged the agency with being negligent when the crypto lending platforms Celsius Network and Voyager Digital failed this summer, preventing thousands of retail customers from accessing their assets.


A recent agreement between U.S. and Chinese authorities on auditing U.S.-listed Chinese companies also drew a cautious response from Gensler, who noted that the agreement is only significant if U.S. officials are really allowed to thoroughly probe Chinese auditors.


He cautioned that if it didn't, 200 businesses may still be subject to trading limitations in the US.