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The latest in financial news: The US government passes a stopgap bill to continue government funding until November, VanEck creates an Ethereum ETF, and views on monetary policy from Fed Vice Chair

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US Government Shifts Shutdown

Over the past weekend, the United States Congress swiftly passed a stopgap bill aimed at maintaining the ongoing operations of the government. In a display of bipartisanship, the bill received approval from both the House and Senate, and it was swiftly signed into law by the President within a mere 24-hour window on Saturday. This legislative action averted an impending government shutdown that would have occurred on October 1st had a resolution not been reached to extend the debt ceiling and/or continue government operations. The stopgap bill effectively extends the current funding for government agencies until mid-November, affording members of Congress the necessary time to deliberate and determine the appropriate funding measures for the fiscal year.

VanEck Creates A Futures Ethereum ETF

VanEck has recently secured approval for its Ethereum-focused exchange-traded fund (ETF), known as the VanEck Ethereum Strategy ETF (EFUT), set to launch on October 2, 2023. This ETF aims to generate income by engaging in the trading of Ethereum futures contracts. It's worth noting that while VanEck's ETF has received the green light, there are more than 10 other funds currently awaiting approval for similar futures ETFs from the SEC. These funds provide investors with exposure to the cryptocurrency market without directly holding the digital assets, as they trade futures contracts linked to Ethereum. It's important to highlight that the SEC has not yet approved any funds for actively managing cryptocurrencies via ETFs.

Vice Chair Gives Speech About Views on Monetary Policy and Current Conditions

Vice Chair for Supervision Michael S. Barr recently gave a speech about the Federal Reserve’s view on the US monetary policy and current conditions of the US economy. He emphasizes their commitment to the Federal Reserve's dual mandate of promoting maximum employment and stable prices, highlighting the crucial role of price stability in supporting a strong labor market and a functioning economy. Then he addresses inflation, citing policy responses such as raising the federal funds rate and reducing the Fed's securities holdings, and how it has been decreasing. Despite moderating inflation, economic resilience is observed, and there is optimism about achieving price stability without significant job losses, while efforts are made to balance labor demand and supply. However, the Federal Reserve expects slower GDP growth due to restrictive monetary policy and tighter financial conditions, potentially leading to a softer labor market. Uncertainty surrounds the timing of the full effects of past monetary policy tightening, prompting a cautious approach to future rate increases and a focus on how long rates need to remain restrictive to meet the Fed's goals. Ongoing assessment of incoming data, including credit cost and availability, informs their decisions.

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