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

May 7th – White House Digital Asset Advisor Patrick Witt announced Thursday that the Trump administration is urging Congress to pass the **Digital Asset Market Clarity Act** (Clarity Act)—a crypto market structure bill—by July 4th, calling it the "best birthday present" for the U.S.’s 250th anniversary. Witt noted the Senate Banking Committee is expected to advance the legislation this month, with four workweeks in June allocated for Senate voting before it moves to the House for a vote. He also confirmed the previously contentious stablecoin yield provision has been compromised. Under the latest proposal, stablecoin issuers will be barred from offering interest comparable to bank deposits but may implement reward mechanisms tied to consumer behavior. Witt emphasized the framework emerged from joint negotiations between the White House, banks, and the crypto industry, stating: "The crypto industry isn’t happy, and banks aren’t happy either—but when both sides are nearly unhappy,

On May 7th, OnchainLens monitoring indicates the whale wallet **bc1qzhwazyya7493f5stdw7h7ntqxq0ajshz3ywxvh** (shorthand: bc1qz) withdrew 283 BTC from Binance again—valued at approximately $22.94 million. As of May 7th, the wallet holds a total of **1,283 BTC** (valued at roughly $104.37 million). Full wallet address: bc1qzhwazyya7493f5stdw7h7ntqxq0ajshz3ywxvh ### Notes on American English adjustments: 1. **Date format**: Used "May 7th" (common in casual/financial news; commas for thousands: 1,283 not 1283). 2. **Conciseness**: Replaced "according to OnchainLens monitoring" with "OnchainLens monitoring indicates" (more active for news). 3. **Clarity**: Linked the shorthand "bc1qz" to the full address upfront (avoids confusion). 4. **Tone**: Used em dashes for natural pauses (common in US financial/crypto alerts) and "roughly" (casual, American-friendly alternative to "around"). 5. **Accuracy**: Kept all key data (date, platform, amount, value, current holdings) intact.

On May 7, the Pentagon awarded a $500 million contract to Scale AI—a Meta Platforms-backed firm (META.O)—to support data processing and decision-making, marking the latest step by the U.S. military to ramp up its reliance on artificial intelligence. The new contract is five times the size of the $100 million deal the company secured in September 2023. Scale AI’s public sector chief, Dan Tadross, said in an interview the Pentagon had “maxed out” the original contract. “I think this contract overall underscores the department’s urgent push to adopt this technology,” Tadross stated. Additionally, the San Francisco-based firm has participated in the Defense Innovation Unit’s “Thunderforge” program (focused on integrating AI into military planning and operations) and Trump’s “Golden Dome” homeland defense architecture. (Jinshi)

**May 7 – Per CCTV News, on May 6 local time, Hazri An, a member of Iran’s Islamic Parliament National Security Committee, told reporters the U.S. military attempted a large-scale operation in the Strait of Hormuz the previous day. Iran’s stronger countermeasures forced the U.S. to announce it was halting the operation, he said.** **An also noted the incident proves U.S. Central Command cannot open the Strait of Hormuz even if it uses all military means.** ### Notes on U.S. English adaptation: 1. **Conciseness**: Trim redundant phrases (e.g., "stated in an interview" → "told reporters"; "announce a halt to the operation" → "announce it was halting the operation"). 2. **Natural phrasing**: Use "per" (common in U.S. news for sources) instead of "according to"; "the previous day" (more idiomatic than "the day before" in formal news). 3. **Clarity**: Simplify complex structures (e.g., split long sentences into concise clauses; avoid overly formal terms like "counterattack" → "

May 7 — As the Iran conflict continues driving up oil prices and straining supply chains, multiple Federal Reserve officials have warned U.S. inflation risks are reemerging. Future interest rates may need to stay elevated for an extended period, with potential for further hikes. St. Louis Fed President Mester said policy risks have clearly tilted toward inflation. Rates may need to hold steady “for a period of time” and could be raised further if needed. He noted rising prices of key industrial inputs like aluminum, helium and diesel are fueling broader cost pressures. Chicago Fed President Evans warned sustained high oil prices over several months would gradually hit global supply chains, potentially replicating the pandemic-era inflation transmission path. He said it’s not yet “stagflation,” but the situation would grow “increasingly tense” if it persists. Data shows U.S. average gasoline prices have climbed above $4.50 a gallon, while the New York Fed’s Global Supply Chain

May 7 – U.S. President Donald Trump said Wednesday that if the U.S. can’t get what it wants from Iran, it will have to take further action. “We hope all Iranians can stay alive,” he added. Iran has committed to not acquiring nuclear weapons. There is no final deadline for the Iran nuclear issue; a deal will eventually be struck, though no final deadline has been set. If Iran possessed nuclear weapons, it would put the world at risk of being held hostage. Oil prices were initially expected to climb to $200-$250 a barrel. Currently, they’re around $100 a barrel. “Even if they hit $200, it will be worth it,” Trump noted.