What happened this week
U.S. Consumer Price Index (CPI)
• Inflation figures rose more than expected in August, posting an 8.3% year-over-year increase: https://www.bls.gov/news.release/cpi.nr0.htm
• The CPI measures prices paid by consumers. Higher inflation means consumers buy fewer goods for each dollar spent.
U.S. Producer Price Index (PPI)
• Core PPI MoM came in 0.1% higher than expectations: https://www.bls.gov/pPI/
• The PPI measures change in prices customers paid to U.S. producers of goods and services.
September FOMC Meeting is due next week (21 September)
• The Federal Open Market Committee (FOMC) meeting will decide the current target rate for the Federal Funds and provide future guidance on monetary policy in the US.
• The market is currently pricing that a 75 basis point hike will be delivered, increasing the current target range to 300-325 bps. Although some analysts are calling for a 100bps hike at this meeting.
• The Merge successfully transitioned Ethereum from Proof-of-Work to Proof-of-Stake (POS).
• The network transitioned to POS after it reached “terminal total difficulty”.
US rail strike averted
• Biden secures deal to avert rail strike. Agreement follows months of negotiations between unions and US largest rail companies.
• Rail employees awarded a 24% wage increase from 2020 through 2024, including immediate payout of $11,000.
SEC's Gensler at the Senate
• SEC Chairman Gary Gensler hearing at the Senate Banking Comittee.
• “Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities."
CFTC's Benham at the Senate
• CFTC Rostin Behnam hearing at the Senate Ag Comittee Hearing on Crypto.
• "The volatility in the market, and its impact on retail customers [...] emphasizes the immediate need for regulatory clarity and market protections."
White House crypto framework
• White House releases framework for crypto regulation in the United States.
• President Biden had instructed federal agencies to examine the risks and benefits of cryptos and report their findings. This framework is their response.
• Basis.markets pivot to BTX and revised tokenomics (title of Proposal 004).
• This proposal describes the new product (BTX) and guidance for accruing value to $BASIS (revised tokenomics).