Morning Minute: Markets Tumble as Iran War Escalates
The Federal Reserve kept interest rates steady at 3.50-3.75%, as expected. February’s PPI rose 0.7%, exceeding forecasts, largely due to rising oil prices amid escalating conflict involving Iran. Fed Chair Powell emphasized that inflation must decrease before more rate cuts but rejected concerns about stagflation, expressing confidence in the U.S. economy. Despite Powell's neutral tone, Bitcoin dropped from $74,000 to $70,000, gold fell 5%, and the Nasdaq was down 1.5%. Hyperliquid launched official S&P 500 perpetual futures, settling in USDC with up to 20x leverage, following recent expansion into other asset perps. The HYPE token briefly rallied on the news. A Senate markup for the Clarity Act is set for the second half of April, with lawmakers stressing a May deadline for digital asset legislation before congressional recess. Contentious issues include stablecoin yield and crypto ethics provisions for officials. Kraken has postponed its IPO plans due to unfavorable market conditions, despite raising $800 million at a $20 billion valuation last year. FTX Recovery Trust will distribute $2.2 billion to creditors on March 31, based on November 2022 asset prices.
