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After the statements from the Fed on Wednesday, the market is already pricing in a rate cut for March. What does this mean? Well, for one, gold and other risk-on assets are performing well, while the dollar has slid lower.

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Markets

Markets are pricing in a March rate cut but not everyone is buying it (3 minute read)
The recent shift in the Federal Reserve's stance has heightened market expectations for earlier and more substantial interest rate cuts in 2024. Markets are currently pricing in an approximately 80% likelihood of the first rate cut occurring in March, according to the CME Fed Watch Tool.

This aligns with Goldman Sachs' updated forecast, which, within a week, adjusted its expectations for rate cuts from the fourth quarter of 2024 to March. Goldman attributed this change to the Fed's commentary indicating a quicker-than-expected decline in inflation and recent inflation data showing a cooler trend than initially projected. The evolving economic landscape is prompting a reevaluation of the timeline and depth of potential rate adjustments by investors and financial institutions alike.

Gold touches 10-day high as Fed hints at lower US rates next year (2 minute read)
Gold prices reached a 10-day high on Thursday following a decline in the U.S. dollar and Treasury yields after the Federal Reserve indicated a conclusion to its monetary policy tightening cycle. Daniel Ghali, commodity strategist at TD Securities, noted that the Fed's dovish pivot, communicated during the previous day's FOMC meeting, provided a clear signal for markets to anticipate a more aggressive cutting cycle ahead, and he expects the market to respond accordingly.

Ghali emphasized that this development is particularly favorable for gold prices, addressing a missing element for the sustainability of the rally to new all-time highs—investor demand. The decrease in interest rates, as implied by the Fed's stance, reduces the opportunity cost of holding non-yielding bullion and exerts downward pressure on the dollar. Consequently, the U.S. dollar slid to a four-month low, accompanied by the U.S. benchmark 10-year yield dropping to its lowest level since late July.

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Investing

‘Wallet drainer’ code added to Ledger library has crypto on edge (3 minute read)
On Thursday morning, reports of malicious code surfaced on social media concerning Ledger's ConnectKit software libraries, responsible for connecting blockchain applications with Ledger devices. Following these warnings, decentralized exchange SushiSwap promptly took its front-end web app offline, acknowledging a critical issue with the compromised ledger connector that posed a potential risk of injecting malicious code into various decentralized applications (dApps).

The malicious file was swiftly replaced with the authentic version around 8:35 am ET, and the new version is currently propagating, set to become active soon, thereby mitigating the threat.

This attack was widespread, with hundreds of dapps using the malicious library in their working code. Fortunately, due to the quick reaction time from the community, damage was limited.

Big Pension Exits Palantir Stake. It Sold AT&T, and Bought Intel and Nvidia Stock. (3 minute read)
Canada's Public Sector Pension Investment Board (PSP Investments), one of the largest pension funds globally, recently revealed big adjustments to its U.S.-traded portfolio. The pension fund divested from its holdings in data-analytics company Palantir Technologies, significantly reduced its position in AT&T stock, and substantially increased its investments in semiconductor giants Intel and Nvidia. The disclosure, submitted to the U.S. Securities and Exchange Commission (SEC), indicated the sale of the entire 111,432 Palantir shares PSP Investments held at the end of June. 

Despite Palantir's stock surging 150% in the first three quarters of the year and an additional 11% in the fourth quarter, the pension fund opted to reallocate its holdings. The decision coincided with Palantir's strong financial performance driven by heightened demand for its artificial-intelligence platform throughout the year.

House Rich Cash Poor Is A Terrible But Fixable Situation (5 minute read)
Experiencing a situation commonly known as "house rich, cash poor" signifies possessing substantial equity in a property but limited available cash. This circumstance arises when a homeowner, for various reasons, chooses not to or cannot access the untapped equity in their home. Whether attributed to overspending tendencies or pressing financial obligations, the homeowner may perceive a sense of financial constraint despite the significant equity in their residence.

To alleviate this situation and regain a sense of financial well-being, there are various strategies to consider, with the effectiveness depending on the specific financial emergency or need at hand.

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