 Great well, I'm visual asset news. My name is Rob and today there's really two big stories The first one out like talk about is as I call it the doquan stablecoin act and what that means as far as moving forward As far as stable coins, and I think some are gonna actually disappear Then also we'll talk quickly about drone Powell and his decision to raise 75 basis points Not really surprising and we'll talk about the Voyager auction update We're gonna talk about how Cardinals a nozzle upgrade is tomorrow Which I think some people have actually forgotten and then also we'll talk about tomorrow's gonna be a Twitter spaces with me Simon Dixon and The Celsius squeeze team we're gonna find out who's lying and we'll go over all those things and of course the very end We're going to Q&A, but first let's take a look at what's going on with drone Powell. Absolutely nothing So drone Powell came out or the Fed reserve came out and said yes, we were raising Interest rates 75 basis points and there's going to be a press conference Which your own pals are gonna come into and talk about why he did it not surprising It's cuz inflation is crazy and then we're gonna go under control and economy be damned. That's what they're gonna do Which is fine. That's fine see it all works out I think they have to do those things and if he comes in live We'll talk about it and see where it goes But the question I had was well, how would that affect the markets because everything's priced in right? Well, kind of actually Bitcoin went up point eight percent. That's pretty good tether. No one really cares. Let me see Yeah, the last hour I should say excuse me Bitcoin did drop a little bit Binance coin by Nancy everything's down a little bit in last hour. How'd that affect the S&P 500? Well, you can see right there a little bit of a drop I think I don't know if people were not expecting that's but that is what it is and also for Nasdaq also a drop So maybe that's your opportunity not financial advice to pick up some really cheap stocks and crypto for a second That's what's going on in the J-PAL world. Let's take a look at what I think is a bigger issue stablecoins and this new law that has been that is in draft now that it is not to say That we have this this is going to pass remember This is just a draft a lot of things can change from now until this actually gets passed by Congress but this is what you have in the floor and I will tell you I think this is what we we deserve this is what we deserve because of Doquan and the shenanigans that we're going out there. I'll explain in a second So draft stablecoin bill in Congress to require Fed and state regulator approval Here's what it is. Here's the crux of it really and I want to go over the whole draft boring But here's what it is stablecoins backed only by other digital assets Created by their issue issuers would see a two-year ban From new issuances. So if you got things coming out right now You're good to go. However Moving forward if you're not backed by anything Then you're gonna have to do something with that or else they're going to not allow you to operate here in the United States With a two-year grace period for existing stablecoins to receive approval after changing their business model Draft legislation to create a US federal framework around stablecoins would temporarily ban the types of payment coins They're not backed by outside assets Similar to Tara USD. So again, are we surprised this is happening? No, how many people lost a boatload of money because of the things that happen with Tara and their Algorithmic stablecoin and the collapse that happened The United States is gonna have to step in they did they said look we could just allow that to happen I want the free market rain just kind of go from there And you know, maybe everybody lose their money I know people right now are screaming at the at the screen and they're saying Rob, you don't get it Let him do it. Let him keep doing it. Let him keep doing it Let all those things to keep happening and everybody's just just lose and lose and lose before they get it Because that's what the free market does, right? That's exactly what could happen. Here's the thing You could do that But how how many times are we gonna let this happen? How many times you let people lose out and here's another question How many people have a perfect memory of what happened two three years ago right now? It's fresh in our minds. So it just happened, right? I can guarantee you people's memories are like goldfish They will not remember as things move down the road never like. Ah, well, it was it was a stable coin There was a thing happen, but there's this new way we're gonna do it So it's gonna be okay. Am I saying that this is the this is the best way to do things and that's what I'm saying I'm just saying that this is the regulation that we deserve after the fiasco that was going on. So let's keep going No, not bank issuers are stable coins backed by fiat currency It would also be overseen by the state banking regulators and the Federal Reserve. That's a bummer Banks or credit unions could issue their own stable coins This is the funny thing you've For these crypto companies that come out. They're saying look if you can do it, but it has to be backed by something And if you don't do that, we're gonna shut you down Now banks or credit unions could issue their own stable coins I don't know why they would but maybe they would which would be overseen by the office of the Comptroller of the currency in the Federal Deposit Insurance Corporation because here's what I'm thinking what's gonna happen as time goes on People will just issue their own stable coin. It'll collapse and they'll take the money and off they go and Then people like I'm not gonna fall for that And then there's a next wave of of guppies come in and the same thing happens to them And it happens over and over and over again. What's the here's my question? What's the problem with was just going? Yeah, we're backed. We have everything backed. We don't have it just like out in thin air Here's what we have here. It is and then so let's just keep moving the current draft bill under negotiation between House Financial Services Committee Maxine waters and Republican rep Patrick McHenry At least it's bipartisan would create a two-year ban on stable coins that aren't fully backed by cash or Highly liquid assets like the US Treasury bonds and the question is, you know What is it being backed by and the next question I had and that would lead me to The the thumbnail that you saw was with tether Like tether. I was always a little bit shaky on it I know some people love to have these tether all the time. I think it's the greatest thing of all time It's great. Fine. Go ahead use whatever you want. I don't care, but I know there was an audit I know I was done by an auditing company in the Cayman Islands And I and it apparently everything's on the up and up now They're gonna have to go through a lot more Rigorous steps. Just am I saying that they bypass anything? No, I'm not I'm just saying it'll be interesting to have more than one set of eyeballs on all these different books To see what actually is reality and what's just out of thin air. I just don't don't see it like usdc Alair the CEO went before Congress go look Everything is backed and here's the documentation that you possibly need. Here's our bank counts. Go ahead and check it Binance coin BNB. I didn't know this till I did a story about two weeks ago They're a hundred percent backed by cash and assets and not just some kind of stablecoin thing So if it's okay for them to do it, why is it? Well, we'll just look at the other guy slide I just I just don't see it to correct me where I'm wrong in the comment section. That's fine That's what we're all here for and then the question I had to ask you is like how many times we can get hacks and pulled Before we all wake up. Here's another thing There was another hack yesterday or today or some time. I can't keep track Winter mute lost 160 million of people's money making it come to number five Look at this. We even have a leaderboard for hacks on our 2022 DeFi exploit leaderboard Well, that's something to be happy about so far For total losses, I guess this is 2020 the last three years, but really 2021 22 We've lost quite a bit of money. We can see here billions of dollars and Here we are in winter mute. They just lost a hundred and sixty million dollars. My question is this How many of these are real hacks that really happen with with hackers? And how many are they are just rug pulls and people just coming behind it going? You know what? We'll say it was a hack and then we'll take these hundreds of millions dollars because it's crypto. Who knows I Have serious questions about all these protocols all of them and then not to be outdone I will give the benefit of the doubt. So winter mute. This is their Wishful cynic. He is the founder and CEO of winter mute and you go. Hey to the hacker We offer a 10% bounty on funds taken to make it easy We propose for you to transfer all the funds taken the exploit save for 16 million so you can keep the 16 million I guess Thanks for returning everything Well, I mean that is one way to do things So that's what's going on in the world of stable coins and my two cents Let me know what you think in the comments. We'll get into that Q&A and Let's talk about some good stuff, huh? Cardano the Voss love greats tomorrow and I think everybody's I mean Everybody who everybody who owns Cardano is excited. Everybody who hates Cardano hates this day. It's just just how it is So just a reminder. It's to it takes place tomorrow. It's set to take place over five days I didn't know that with the first round of upgrade schedule for tomorrow in the second on September 27th And this is from Charles Hoskins, and he says we don't want to participate There will be any issues, but there's no going back now no amount of testing or anything can save us It's either gonna hit orbit or it's gonna explode. That's a that's one way to say it. Hopefully it works out And here's what it does. Voss will enable applications built on Cardano to become faster more sophisticated Make the blockchain easier to build upon all improving the user experience. I gotta tell you I've got I use Deadless wallet. I have no problems just that it takes a long time to download it also improve the network scaling capabilities through pipelining and lower transaction fees like that and But not to be a done Hard cork hard cork hard fork was originally scheduled for June 29th But suffered from two delays to allow for more testing and patching issues. Well, thank God They did that isn't that the whole point of the testing so I'm happy they tested and they figured out Hey, it's not gonna work. Let's push things back At least it and they didn't push it back like two or three years just saying anyhow, what you think about that in the comments Let's finish up with a little Voyager auction news so he didn't know voyagers in chapter little bankruptcy And there's a couple of big players that came out that were in the lead and apparently and This is just hearsay. This has not been this has not been officially reported but Crypto exchange is buying it today FTX have both bid roughly 50 million for voyagers assets a little confusing to me But just so you know neither offer has been accepted FTX and by us were in the hunt to acquire voyagers assets in the bankruptcy auction Which was held last week in New York final results the auction are expected to be announced on September 29th But that's not true. It's actually going to be announced. This is from Patrick Ackerman To looks like the voyager sale announcement has been postponed from September 29th to October 19th So we won't figure out anything until next month. But the thing that confuses me is this. Oh Hey Real quick We'll get to that a second. It's ought to be good. We're gonna finish up anyhow The thing that does that confuse me is about this So as far as assets, this is from the the Voyager Committee the total cash is 104 million total crypto loan Excluding 3 AC is 470 million total crypto held a 685 million. So the total crypto held alone is 1.2 billion dollars And they just got all this for 50 million I just don't I don't know if that's that's just to acquire the company and then to make different parts of the other people whole or Exactly how that's working and I couldn't get any any definitive answers from anybody So if anybody knows anything, let me know in the comment section and then lastly before we listen to Jay Powell I'm gonna be on a Twitter spaces Which I really don't like those things, but whatever It's gonna be me Simon Dixon and the crew from the Celsius short squeeze Otis and there's been a lot of back-and-forth stuff like this people accusing Simon like he's got his own agenda What's your plan? Where's your plan? Have you submitted your plan? And he's like, hey, there has to be Exclusivity Celsius Network has to do their thing first then I can do it later So there's a lot of back-and-forth about people saying you're a liar. No, you're a liar So I'm not gonna I brought these two guys together and we'll talk about who's lying and we'll go from there And then lastly before listen to Jay Powell remember Puerto Rico still underwater. There's a lot of problems going on Variable variable issues for electricity. If you could help Puerto Rico. There's two parts first option There's a link in the description twitter.com on a Maria and then also protechos to start rebuilding those roofs because a lot of them got Ripped off and people can't live in their houses. So that's what's going on right now. Whoa, I just missed blue past that one Let's listen to a little Jay Powell and what he's got to say and go from there. So that'd be interesting share my tab Let's take a listen We have both the tools we need and the result that it will take to restore price stability on behalf of American families and businesses Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy Without price stability the economy does not work for anyone in particular without price stability We will not achieve a sustained period of strong labor market conditions that benefit all Today the FOMC raised its policy interest rate by three quarters of a percentage point and we anticipate that ongoing increases will be appropriate We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2% In addition, we are continuing the process of significantly reducing the size of our balance sheet I will have more to say about today's monetary policy actions after briefly reviewing economic developments The US economy has slowed from the historically high growth rates of 2021 which reflected the reopening of the economy following the pandemic recession Recent indicators point to modest growth of spending and production Growth and consumer spending has slowed from last year's rapid pace in part reflecting lower real disposable income and tighter financial conditions Activity in the housing sector has weakened significantly in large part reflecting higher mortgage rates Higher interest rates and slower output growth also appear to be weighing on business fixed investment while weaker economic growth abroad is restraining exports As shown in our summary of economic projections, since June FOMC participants have marked down their projections for economic activity With the median projection for real GDP growth standing at just 0.2% this year and 1.2% next year Well below the median estimate of the longer run normal growth rate Despite the slow down in growth the labor market has remained extremely tight with the unemployment rate near a 50 year low job vacancies near historical highs and wage growth elevated Job gains have been robust with employee employment rising by an average of 378,000 jobs per month over the last three months The labor market continues to be out of balance with demand for workers substantially exceeding the supply of available workers The labor force participation rate showed a welcome uptick in August but has little changed since the beginning of the year FOMC participants expect supply and demand conditions in the labor market to come into better balance over time easing the upward pressure on wages and prices The median projection in the SEP for the unemployment rate rises to 4.4% at the end of next year, a half percentage point higher than in the June projections Over the next three years the median unemployment rate runs above the median estimate of its longer run normal level Inflation remains well above our 2% longer run goal Over the 12 months ending in July total PCE prices rose 6.3% excluding the volatile food and energy categories core PCE prices rose 4.6% In August the 12 month change in the consumer price index was 8.3% and the change in the core CPI was 6.3% Price pressures remain evident across a broad range of goods and services Although gasoline prices have turned down in recent months they remain well above year earlier levels In part reflecting Russia's war against Ukraine which has boosted prices for energy and food and has created additional upward pressure on inflation The median projection in the SEP for total PCE inflation is 5.4% this year and falls to 2.8% next year, 2.3% in 2024 and 2% in 2025 Participants continue to see risks to inflation as weighted to the upside Despite elevated inflation, longer term inflation expectations appear to remain well anchored as reflected in a broad range of surveys of households, businesses and forecasters as well as measures from financial markets But that is not grounds for complacency The longer the current bout of high inflation continues the greater the chance that expectations of higher inflation will become entrenched The Fed's monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power Especially for those least able to meet the higher costs of essentials like food, housing and transportation We are highly attentive to the risks that high inflation poses to both sides of our mandate and we are strongly committed to returning inflation to our 2% objective At today's meeting the committee raised the target range for the federal funds rate by 3.25% bringing the target range to 3-3.25% And we are continuing the process of significantly reducing the size of our balance sheet which plays an important role in affirming the stance of monetary policy Over coming months we will be looking for compelling evidence that inflation is moving down consistent with inflation returning to 2% We anticipate that ongoing increases in the target range for the federal funds rate will be appropriate The pace of those increases will continue to depend on the incoming data and the evolving outlook for the economy With today's action we have raised interest rates by 3 percentage points this year At some point as the stance of monetary policy tightens further it will become appropriate to slow the pace of increases While we assess how our accumulative policy adjustments are affecting the economy and inflation We will continue to make our decisions meeting by meeting and communicate our thinking as clearly as possible Restoring price stability will likely require maintaining a restrictive policy stance for some time The historical record cautions strongly against prematurely loosening policy As shown in the SCP the median projection for the appropriate level of the federal funds rate is 4.4% at the end of this year 1 percentage point higher than projected in June The median projection rises to 4.6% at the end of next year and declines to 2.9% by the end of 2025 Still above the median estimate of its longer run value Of course these projections do not represent a committee decision or plan and no one knows with any certainty where the economy will be a year or more from now We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply Our overarching focus is using our tools to bring inflation back down to our 2% goal and to keep longer term inflation expectations well anchored Reducing inflation is likely to require a sustained period of below trend growth And it will very likely be some softening of labor market conditions Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run We will keep at it until we are confident the job is done To conclude, we understand that our actions affect communities, families and businesses across the country Everything we do is in service to our public mission We at the Fed will do everything we can to achieve our maximum employment and price stability goals Thank you and I look forward to your questions Hi Chair Powell, thank you for taking our questions, Gina Smiley from the New York Times I wonder if you could give us a little detail around how you'll know when to slow down these rate increases and how you'll eventually know when to stop So I will answer your question directly but I want to start here today by saying that my main message has not changed at all since Jackson Hole The FOMC is strongly resolved to bring inflation down to 2% and we will keep at it until the job is done So the way we're thinking about this is the overarching focus of the committee is getting inflation back down to 2% To accomplish that we think we'll need to do two things in particular to achieve a period of growth below trend And also some softening and labor market conditions to foster a better balance between demand and supply in the labor market So on the first, committee's forecasts and those of most outside forecasters do show growth running below its longer run potential this year and next year On the second though, so far there's only modest evidence that the labor market is cooling off Job openings are down a bit, as you know quits are off their all time highs There's some signs that some wage measures may be flattening out but it's not moving up, payroll gains have moderated but not much And in light of the high inflation we're seeing, we think we'll need to, and in light of what I just said, we think that we'll need to bring our funds rate to a restrictive level and to keep it there for some time So what we'll be looking at I guess is your question. So we'll be looking at a few things. First, we'll want to see growth continuing to run below trend We'll want to see movements in the labor market showing a return to a better balance between supply and demand And ultimately we'll want to see clear evidence that inflation is moving back down to 2% So that's what we'll be looking for In terms of reducing rates, I think we'd want to be very confident that inflation is moving back down to 2% before we would consider that Thank you Mr. Chairman, Steve Leesman, CMBC One second Okay, so that's pretty much it. I mean look, I mean we could listen to Jay Powell all time but I think we got the gist of it, what he wants to do He's not going to stop until the job is done. They want to hit 2%, whether they make it or not, I have no idea There's three things that they actually want to see. They want to take a look at supply and demand They want to make sure that the inflation rate goes starting to actually decrease and the things they're actually doing are working So until that time happens, which I don't see that going down, and we just saw the CPI numbers, especially core inflation go up Or month over month, I guess It's probably going to keep raising. So the question then is what are we going to have until the end of the month? And I think, let me make sure that I'm not talking out of my left side September, okay, I was wrong So there are a couple of more meetings. Let me share my screen Coming up. So right now they just got done with the September 2021 meeting You're going to skip October. Hey, October's out. And then you get November 1st and 2nd Remember those are midterm times for America. It was they start to vote in or vote out different members of Congress And then another one December 13th and 14th. So along that time, expect more rate hikes Well, they go 100 basis points, 75 base points, 50 base points, no clue But like he said, and it was interesting what he said there. He goes, Hey, we're going to make this or continue this on into 2023 And 2024 to maybe we can taper off in 2025 That's Jay Powell talking not me. And of course, if you want to fight the Fed like Ben talks about, go right ahead. That's not my game Just here to just to accumulate a little bit and that will take care of today for the news. So look, thanks for stopping by and hanging out with me for 25 minutes Well, me and Jerome Powell hanging out with us. So that's great But that's it for the news. If you want to stick around, I'll answer everybody's questions the best of my abilities and we'll go from there If not take off hit the like button, subscribe. Sure. And we go from there. But thanks so much. I appreciate it. Now let's get into a little Q&A Let's see what we got