Fed's Schmid: Midterm elections will not affect the Federal Reserve's October meeting decision.

Revolut phased in the launch of its first euro stablecoin, EURR, on August 26, initially making it available to select customers in Denmark, Poland and Portugal, with plans to expand access to other European Economic Area (EEA) regions later this year. EURR is legally issued by Bridge Building S.A., a subsidiary of Stripe’s Bridge, pegged 1:1 to the euro and redeemable at face value. It currently has a circulation of 369 units, backed by a €369 reserve. Boasting over 80 million retail customers, Revolut’s launch provides a key distribution channel for euro stablecoins.

According to official announcements, Lido has adjusted the fee structure of its EarnETH Vault: the fixed management fee has been cut from 1% to 0.2%, while the performance fee has been raised from 10% to 15%. Going forward, the maximum fees will be capped at a 0.5% management fee plus a 20% performance fee, with specific rates adjusted based on the Vault’s performance. The actual fees currently charged will remain displayed on the EarnETH Vault interface.

Today, Lewis Huang, chief analyst at Bitget CFD, stated during a live stream that this week’s U.S. PCE data and the Jackson Hole Economic Symposium will be the market’s key focus. Markets are not only watching whether the Federal Reserve will adjust interest rates, but also closely monitoring how it addresses persistent inflation above the 2% target, elevated long-term Treasury yields, and fiscal pressures. Huang noted that if core PCE comes in hotter than expected and the Fed signals it will maintain tight monetary policy or emphasize its fight against inflation, U.S. Treasury yields and the dollar could find support, while rate-sensitive assets like gold and the Nasdaq 100 may come under pressure. Conversely, if inflation data cools and officials signal a willingness to retain policy flexibility, markets may reprice for future easing, which would benefit gold, non-U.S. currencies, and growth stock indices. This round of PCE data largely met expectations, so the market’s focus has shifted to the Jackson Hole symposium. Additionally, Middle East tensions and Strait of Hormuz risks could still lift oil prices and inflation expectations. Traders should closely track the correlation between the U.S. Dollar Index, U.S. 2-year and 10-year Treasury yields, gold, and crude oil. After major data releases, it’s advisable to wait for the market to confirm its direction before acting, and avoid using high leverage to chase initial market moves.

The European Central Bank (ECB) has warned that future risks to oil and gas prices remain elevated due to geopolitical developments in the Middle East, Ukraine, and Russia. The ECB’s meeting minutes, released Thursday, show that while current oil prices “remain far below recent highs” and futures price curves have weakened, “oil prices will still be far above pre-war levels throughout the forecast period, signaling sustained upward pressure on oil prices with risks tilted to the upside.” Additionally, the ECB noted that the recent drop in oil prices “has not eased the medium-term inflation path reflected in market pricing,” adding that “inflation expectations remain anchored.” The ECB reaffirmed it will continue to fulfill its mandate to maintain price stability and “act in a timely manner” to achieve its medium-term 2% inflation target. (Jinshi)

According to Bloomberg, Ripple’s institutional brokerage arm Ripple Prime has launched its Delta One business, marking the firm’s first foray into the stock market. The service allows investors to execute total return swaps (TRS) on U.S. stocks, U.S. stock indices, and digital assets, catering to institutional clients including hedge funds, market makers, and ETF issuers.

Fed official Schmid said that with inflation remaining above the Federal Reserve’s 2% target, the current U.S. interest rate level is not restraining the American economy. Schmid stated: “For my part, I think short-term interest rates may be too accommodative. So, we still have work to do.” At the July meeting, policymakers voted to keep interest rates in the 3.5% to 3.75% range. Three officials dissented, voting in favor of a rate hike. The meeting minutes showed that several officials, including some non-voting members, supported a rate hike, while many others noted that monetary policy would need to be tightened if inflation does not cool. “Some of my colleagues dissented at the last meeting, so I might be in that camp,” Schmid said. He also pushed back against claims that the Fed’s credibility has been damaged. Earlier, a poorly received July press conference by Fed Chair Walsh triggered a sharp reaction in the bond market, with some arguing this had eroded the Fed’s credibility. (Source: Jin10)