Fed's Williams: If inflation does not return to the 2% target as expected, the Federal Reserve will take action.

New York Fed President John Williams said the Federal Reserve’s decision to hold interest rates steady in July aligns with current economic conditions: the labor market remains stable, economic growth is solid with no signs of overheating, justifying no immediate rate hikes. Williams noted that the impact of tariffs on U.S. inflation has mostly passed through and is unlikely to drive significant further inflation in the coming months. In the baseline scenario, inflationary pressures from energy prices and tariffs are near their peak, and factors that previously pushed inflation higher are expected to gradually ease. He stated that the Middle East conflict has lifted oil prices, but markets generally expect the situation to eventually de-escalate, with prices likely to fall once energy trade resumes. Still, energy markets remain highly uncertain. Williams reiterated that U.S. inflation is projected to return to the Fed’s 2% target by 2028. He pointed out that falling housing costs, declining goods inflation, and cooling core services inflation will continue to pull inflation lower. On the AI investment boom, Williams said he sees no signs of a bubble at present. He views AI as a general-purpose technology with transformative potential; current investment enthusiasm reflects market expectations of productivity gains and new business models, though competition among different firms and technology paths may lead to market volatility in the future. Additionally, Williams said the Fed scrapped forward guidance due to high current economic uncertainty, noting that policy should be adjusted dynamically based on data obtained at each meeting rather than setting a pre-determined path. He stressed that the Fed will continue to independently assess economic data and remain committed to bringing inflation back to its 2% target.

Whale trader Loracle boosts gold long positions. According to monitoring by Mlm Onchain, the whale has established and is continuously adding to gold long positions worth over $23 million, while opening ETH short positions worth over $28 million and SNDK short positions worth over $8 million.

American Bitcoin (NASDAQ: ABTC) released its Q2 2026 financial report, showing that as of June 30, the company’s Bitcoin reserves rose to approximately 8,002 BTC, an increase of about 981 BTC from the end of Q1, representing a 14% quarterly growth. Satoshis per share grew by roughly 11%. During the reporting period, the company mined approximately 932 BTC, hitting a record high quarterly production. Mining revenue totaled around $67.02 million, an 8% quarter-over-quarter increase, with gross margin remaining at roughly 50%. The per-BTC mining cost stood at $36,500, nearly unchanged from the prior quarter. Mike Ho, CEO of American Bitcoin, stated that the company will continue expanding mining infrastructure and strengthening its balance sheet to steadily grow its Bitcoin reserves. Eric Trump, co-founder and Chief Strategy Officer, noted that the firm now holds over 8,000 BTC and operates one of the world’s largest Bitcoin mining platforms, expressing unwavering confidence in Bitcoin’s long-term prospects.

According to market data from BIT (Bit.com), GameStop (GME)’s decline widened to 12% during pre-market trading of US stocks.

QCP Capital noted in a report that the U.S. and Japan launched a rare joint foreign exchange intervention last Friday. The Federal Reserve Bank of New York, acting on behalf of the U.S. Treasury, purchased yen, marking the first joint forex intervention by the two countries since 2011 and the first coordinated action specifically to support the yen since 1998. QCP pointed out that the move refocused the market on long-term U.S. Treasury yields: the 30-year U.S. Treasury yield once rose to around 5.27%, a new high since 2007, while the 10-year breakeven inflation rate remained at roughly 2.28%. Market focus has expanded to U.S. Treasury issuance, investor demand, and cross-border capital flows. For the crypto market, the rapid yen appreciation may trigger unwinding of yen carry trades, spilling over to risk assets including BTC and ETH. Should the yen exchange rate stabilize, it could also reduce the need for future interventions and ease liquidity pressure in the U.S. Treasury market. Overall, the intervention is not a clear directional signal for crypto assets, but it highlights that the USD/JPY exchange rate, Japan’s financing environment, and long-term U.S. Treasury yields are becoming important factors affecting the liquidity environment of BTC and ETH.

BNP Paribas expects US Treasury yields to continue rising as markets price in expectations of future Federal Reserve rate hikes. The bank forecasts the Fed will raise interest rates three times starting in December, and holds that after last week’s decision to keep rates steady (despite three dissenting votes in favor of a hike), investors will continue to question the Fed’s credibility. (Jinshi)