Lookonchain APP

App Store

Federal Reserve Monetary Policy Report: Plan to Stop Balance Sheet Reduction at Appropriate Time

2025.02.08 00:40:24

February 8th. The Federal Reserve issued its semiannual monetary policy report. It was mentioned in the report that the Fed is continuously and significantly reducing its holdings of U.S. Treasury securities and agency securities in a predictable manner. Since June 2024, the Fed has decreased its holdings of securities by $297 billion, and the total holdings of securities have declined by approximately $2 trillion since the start of the balance sheet reduction. The Federal Open Market Committee (FOMC) expressed its intention to maintain the level of securities holdings at a level that is consistent with the efficient implementation of monetary policy under the ample-reserve regime. In order to ensure a smooth transition, the FOMC slowed down the pace of securities holdings reduction in June 2024 and intends to stop reducing holdings when the reserve balance is slightly above the level that it deems to be consistent with ample reserves. Driven by a strong labor market and rising real wages, consumer spending has been continuously growing vigorously. Meanwhile, real business fixed investment has increased moderately. In the housing market, new home construction has been strong, but existing home sales remain sluggish as mortgage rates remain high. Unlike the GDP situation, manufacturing output has remained relatively stable. This is partly due to the softness in production in interest rate-sensitive industries. The U.S. financial system remains sound and resilient. Valuations in various markets, such as stocks, corporate debt, and residential real estate, are still relatively high compared to fundamentals. The ratio of total household and nonfinancial business debt to Gross Domestic Product (GDP) continues to decline and is currently at historically low levels compared to the past two decades. The capital levels reported by most banks are still well above regulatory requirements. Although the reliance on uninsured deposits has decreased, some banks still face significant fair value losses on fixed-rate assets. Regarding funding risks, although the 2023-2024 Securities and Exchange Commission reforms to money market funds (MMFs) have partially alleviated the vulnerability of major MMFs, other lightly regulated short-term investment instruments still remain susceptible to shocks and lack transparency. At the same time, the asset size of these instruments continues to grow. Meanwhile, hedge funds seem to have high and concentrated leverage ratios. (Jinse)
Relevant content

On-chain Staking Decreases by Over 3.15 Million Coins Following Price ATH, Staking Size Slightly Retreats

May 28: Hyperscreener data shows that after hitting a fresh all-time high (ATH) last week, the on-chain staking volume for Hyperliquid’s HYPE token has dipped. A week ago, on the exact day HYPE reached its ATH, total on-chain staking stood at 434.76 million tokens: the official foundation held 234.42 million staked, while non-foundation addresses accounted for the other 200.34 million. As of now, that total has fallen to 431.61 million tokens—with the foundation’s staked amount at 233.36 million and non-foundation holders at 198.25 million. In the week following HYPE’s ATH, total on-chain staking dropped roughly 3.15 million tokens. Breakdown shows the Hyperliquid foundation unstaked around 1.06 million tokens, while non-foundation addresses pulled approximately 2.09 million in staked HYPE. Per HTX market data, HYPE is currently trading at $58.2, down 3.36% over the past 24 hours. Market analysis suggests that after HYPE’s sharp surge to its new high, some holders unstaked to u

2 minutes ago

Polymarket denies implementing full KYC, only requiring some users to verify for the beta product

May 28 — Josh Stevens, VP of Engineering at prediction market platform Polymarket, refuted a The Information report alleging Polymarket plans to roll out KYC (Know Your Customer) for all users over compliance pressures. Stevens called the report inaccurate, stating Polymarket is only testing a new beta product where a limited subset of beta participants need KYC during the testing phase. The existing core Polymarket platform has no new KYC requirements, and once the beta test wraps up, users will not need to undergo KYC for regular, standard platform usage.

2 minutes ago

「Stock God」 Serenity: May Analyze Two Chinese Stocks, Even Though Personally Not Invested

May 28th – The so-called "Stock God" Serenity posted on social media, saying, "Seeing the massive support from the Chinese community on X really brightens my day. This reflects a fascinating cultural difference: people here always make an effort to unpack my thinking process and stock-picking logic, using those insights to refine their own investment systems. By contrast, folks from other cultural backgrounds often come in and dismiss everything outright. For fun, I might even start sharing my views on two Chinese stocks – even if I don’t currently hold any positions in them."

2 minutes ago

Samsung Securities is planning to acquire a 2% stake in Dunamu, the operator of Upbit, with an estimated investment of around $203 million.

On May 28, Samsung Securities announced it will acquire a stake in Dunamu—operator of South Korea’s largest cryptocurrency exchange Upbit—to boost its digital financial competitiveness. This move comes as South Korea’s financial regulators recently hinted at relaxing the "Kimchi Premium" policy (a rule separating the traditional financial industry from virtual asset sectors), signaling an accelerated push toward integration between mainstream financial institutions and cryptocurrency exchanges. Following a board meeting held on the same day, Samsung Securities confirmed it will purchase 697,487 old shares of Dunamu, equivalent to approximately a 2.00% stake. The total transaction amount is roughly 3.637 trillion South Korean won (about $2.03 billion), accounting for around 3.8% of Samsung Securities’ total equity of 80.68 trillion won. The sellers of the old shares include Kakao Investment, Kakao Ventures, Kakao Young Entrepreneurs Fund, and the KIF-Kakao Woori Bank Tech-Finance Inves

2 minutes ago

Iranian Media Confirms US Military Fire After Revolutionary Guard Confrontation with American Oil Tanker

On May 28, the U.S. military opened fire in the area around Iran’s Hormuz Port, close to the Strait of Hormuz, according to Iran’s Tasnim News Agency, which cited a military source. The incident followed a standoff between Iran’s Revolutionary Guard and a U.S. oil tanker attempting to transit the strategic Strait of Hormuz.

2 minutes ago

Yield Guild Games' Entity Transfers All UNI and COMP to Binance, Risking $40.29 Million Loss in "Rug Pull"

May 28 — According to ChainNews, InBlockchain’s secondary investment arm, Trend Research, transferred an additional 2.705 million UNI (≈$8.71 million) and 114,000 COMP (≈$2.13 million) to Binance an hour ago. The transfer is likely part of preparations to liquidate its entire position; if all these tokens are sold, the total loss would hit $40.29 million. As previously reported, on May 25, Trend Research had deposited 2.7 million UNI and 114,352 COMP into Binance.

2 minutes ago