Point of View: The Federal Reserve Has Over-Eased, with a 65% Chance of Stagflation in the United States

March 5 (Wall Street News) — Goldman Sachs is bucking the trend amid global market volatility, framing the recent pullback as a buying opportunity rather than the start of a long-term bear market—backed by its bullish call for a four-week recovery in Strait of Hormuz shipping flows. Led by Peter Oppenheimer, the firm’s strategy team said in a Wednesday report that while risk assets face “significant headwinds” from Middle East conflict concerns and AI disruption, resilient economic fundamentals and strong corporate profit growth will limit the pullback’s depth and duration. Goldman’s optimism about global markets hinges largely on expectations for a swift energy supply chain rebound. Chief Oil Strategist Daan Struyven forecasts blocked oil shipments in the Strait of Hormuz will stay at current extremely low levels for the next five days, rebound to 70% of normal volumes within two weeks, and fully normalize at 100% capacity in four weeks.

March 5 — Per official sources, Aave Labs has released a full transparency report on its Aave V4 Security Plan, covering methodology, process, and outcomes. The report has endorsements from security firms including Trail of Bits, Blackthorn, and Certora. The plan included over 345 days of security reviews via manual audits, formal verification, invariant testing, fuzz testing, and public security competitions. It’s backed by a $1.5 million dedicated security budget approved by the DAO. Aave Labs also announced it will continue five core commitments from the V4 plan: 1. Integrate formal verification early in development to guide architectural design with secure practices (not just post-development validation); 2. Use a layered security approach (manual audits, formal verification, invariant testing, AI-assisted checks, fuzz testing, public security competitions) to cover more potential vulnerabilities; 3. Maintain ongoing security coverage: its formal verification framework

March 5 — OpenAI has tapped law firms Cooley and Wachtell to prepare for its IPO, per The Information.

March 5: Anthropic’s CEO has resumed negotiations with the U.S. Department of Defense (DoD) over an AI agreement, per the Financial Times. The executive is meeting with Deputy Defense Secretary Hoxie to seek a compromise on the military deployment of Anthropic’s technology.

March 5th: A wallet linked to X user @sillytuna was drained in a flash loan attack, resulting in a ~$24 million loss in aEthUSDC, per PeckShield monitoring. Roughly 20 million DAI is currently held in two attacker-controlled intermediary wallets and has not yet been laundered. The attacker has also begun bridging small amounts to Arbitrum. @sillytuna has launched a bounty, offering a 10% reward for the recovery of the stolen funds.

On March 5, Solana-based lending protocol Loopscale announced that liquidity provider (LP) tokens from Orca and Raydium are now eligible as collateral for borrowing. Unlike centralized lending pool models, Loopscale’s order book architecture prices each position based on its unique conditions. This credit market infrastructure is set to unlock over $1 billion in yield liquidity. The system independently assesses and prices each LP token using multiple variables—including price ranges, fee tiers, and underlying assets.