Core Viewpoint - Stephen Miran, a new appointee to the Federal Reserve's interest-rate-setting board, advocates for more aggressive interest rate cuts, suggesting rates should be below 3% by year-end [2][6]. Interest Rate Decisions - The Federal Reserve recently cut interest rates by a quarter point, bringing them to a range of 4% to 4.25%, the lowest since early 2023. Miran was the only voting member to oppose this decision, advocating for a half-point cut instead [1]. Economic Analysis - Miran believes that concerns over inflation due to tariffs are overstated, arguing that small price changes in certain goods do not warrant significant worry. He predicts that exporters will lower prices, and he expects a cooling in the housing market due to a declining population influenced by immigration policies [2][4]. - In contrast, Fed Chair Jerome Powell acknowledges that higher tariffs have begun to increase prices in some categories, but the overall impact on economic activity and inflation remains uncertain [3]. Inflation Targeting - The Federal Reserve has maintained a target inflation rate of 2%, which has not been achieved since 2021. Miran views this target as overly restrictive and believes that precise inflation targets can lead to excessive micromanagement [5][6]. Role and Influence - Miran is positioned as an economic advocate for Trump within the Fed, being the first governor to serve on the board while also holding a role in the executive branch in nearly a century. He is currently on leave from his role as chair of Trump's Council of Economic Advisers [6]. - Miran emphasizes his independence in decision-making, stating that he will not conform to consensus for its own sake and will vote according to his beliefs [8].

Core Insights - Digital asset investment products experienced inflows of $1.9 billion following the Federal Reserve's first interest rate cut of 2025, bringing total assets under management to a year-to-date high of $40.4 billion [1][2] Inflows and Performance - Bitcoin funds attracted the largest share of inflows with $977 million, contributing to a four-week total of $3.9 billion [2] - Ethereum saw significant inflows of $772 million, pushing its year-to-date total to a record $12.6 billion [3] - Other cryptocurrencies like Solana and XRP also gained investor interest, with inflows of $127.3 million and $69.4 million, respectively [3] Market Reaction - Following the Fed's interest rate cut, Bitcoin briefly rose above $117,000 before settling at $115,089, down 1.2% in 24 hours [4] - Ether traded as high as $4,600 during the week but slipped back to around $4,465 [4] - The crypto market saw over $105 million liquidated after the Fed Chair's press conference, with significant losses in long positions [4] Institutional Interest - Bitcoin spot ETFs recorded a total net inflow of $222.6 million, with BlackRock's iShares Bitcoin Trust leading at $246.1 million [5] - The cumulative net inflow into Bitcoin spot ETFs now stands at $57.7 billion, representing 6.6% of Bitcoin's market capitalization [5] - Ethereum ETFs also saw notable activity, with BlackRock's ETHA product leading with $144.3 million in inflows [6]

Core Insights - Federal Reserve Governor Stephen Miran voted against a quarter-point reduction in the benchmark interest rate, advocating instead for a half-point cut to address potential unemployment issues [3][7] - Miran argues that the majority of Fed officials overestimate inflation risks, particularly regarding tariffs, which he believes have led to excessive concern over price pressures [3][7] - He predicts that tariff revenues could significantly reduce the federal budget deficit, potentially by over $380 billion annually in the next decade, which may ease upward pressure on interest rates [4] Monetary Policy Debate - The recent monetary policy discussions have highlighted differing views among Fed officials, with St. Louis Fed President Alberto Musalem expressing limited room for further easing without risking an overly accommodative policy [5][6] - Musalem supported the recent 25-basis-point rate cut as a precautionary measure to support the labor market, emphasizing the importance of controlling inflation, which may remain above the 2% target due to tariffs and labor supply issues [5][6] - Miran contends that the neutral rate of interest has likely decreased due to tariff revenues and tax policies, suggesting that current monetary policy is too restrictive and risks higher unemployment [7]

Stephen Miran, chairman of the Council of Economic Advisers, following a television interview outside the White House in Washington, DC, US, on Tuesday, June 17, 2025.Less than a week after taking his seat, Federal Reserve Governor Stephen Miran on Monday outlined the reasons why he thinks the central bank's benchmark interest rate is far too high and should be lowered aggressively.Changes in tax and immigration policy along with easing rental costs, deregulation and incoming revenue for tariffs are creatin ...

Core Insights - The Federal Reserve's recent interest rate cut is seen as a response to economic uncertainties, balancing job market weaknesses against inflation risks [2][6] - Bond fund managers at firms like BlackRock and PGIM are focusing on middle-maturity Treasuries, which are less affected by economic volatility and have provided solid returns [3][7] Group 1: Federal Reserve Actions - The Fed's quarter-point rate cut is characterized as a "risk management cut," with future decisions to be made on a meeting-by-meeting basis [6] - The Fed's forecasts suggest two more rate reductions are likely this year, despite recent comments causing bond yields to rise [6] Group 2: Economic Conditions - A significant slowdown in hiring has been noted, influenced by external factors such as trade tensions, while other economic elements remain resilient [5] - The potential for renewed inflation due to tariff hikes poses a challenge to the Fed's target of 2% inflation [5] Group 3: Investment Strategies - The strategy of investing in the "belly" of the yield curve, particularly 5- to 7-year Treasuries, has proven successful, with returns of approximately 7% compared to the broader market's 5.4% [7]

CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U) is Singapore’s largest real estate investment trust (REIT) with a portfolio of prime retail and office assets in the commercial sector. Despite rising financing costs, CICT has continued to show resilience. With the Fed expected to cut rates in September 2025, could CICT be poised for a stronger run?Why CICT has held up wellCICT’s distribution per unit (DPU), a measure of the income investors make per unit invested, rose by 3.5% in the first half of ...

Economic Context - The Federal Reserve cut interest rates by a quarter of a point in September, with indications of two more cuts in October and December [1][2] - Mixed signals in the economy complicate the decision-making process, with inflation remaining higher than desired while the job market shows signs of faltering [2] Company Analysis Visa - Visa is the largest credit card company globally, serving as a key indicator of consumer spending habits [5] - The company benefits from increased economic activity as lower interest rates stimulate spending, leading to higher processed transaction volumes [6] - In the fiscal third quarter of 2025, Visa reported a 14% year-over-year revenue increase and an 8% rise in payments volume, with net income also up by 8% [7] - Visa is considered a solid long-term investment, supported by its low-cost business model and backing from notable investors like Warren Buffett [7] SoFi Technologies - SoFi, a neobank, is positioned to benefit from lower interest rates due to its significant lending segment and rapid growth compared to traditional banks [8][9] - The company offers a range of financial services, including loans and cryptocurrency trading, and is expanding into international money transfers via Blockchain [10][11] - SoFi has already seen accelerated revenue growth and improved credit metrics as interest rates decline, which is expected to positively impact all its business segments [12][13] Carnival Corporation - Carnival is experiencing high demand for cruises, with record operating income and plans for new ships and destinations [14] - The company carries over $27 billion in debt but has been refinancing at better rates, saving millions in interest payments [15] - Despite concerns about its debt, Carnival's strong market position and healthy demand suggest potential for stock price appreciation as profitability improves [15][16]

Group 1: Interest Rate Impact on Stocks - The recent interest rate cut is expected to be bullish for the market, enabling more business spending [1][2] - The focus is on tech stocks, particularly those serving businesses, as consumer spending appears constrained [2] Group 2: Company Analysis - Broadcom - Broadcom specializes in semiconductor and software solutions, particularly in the AI market with custom ASICs and networking chips [4] - The company has increased its research and development spending to $8 billion in the first nine months of fiscal 2025, up from $7.1 billion in the previous year [6] - Broadcom's stock has seen a 10-fold increase over the last decade, supporting an 88 P/E ratio and a forward P/E ratio of 51, indicating potential for further investment as business spending increases [7] Group 3: Company Analysis - DigitalOcean - DigitalOcean focuses on cloud and AI services for small and medium-sized businesses, differentiating itself with transparent pricing [8][9] - Revenue growth has slowed, with $429 million in the first half of 2025, reflecting a 14% increase year-over-year, below the expected 20% CAGR for the cloud industry [10] - Lower interest rates could provide relief to DigitalOcean's customers, potentially catalyzing growth and breaking the stock out of its current range [11] Group 4: Company Analysis - Block - Block's Cash App competes with PayPal's Venmo, and lower interest rates may boost consumer spending in this area [12] - The Square fintech ecosystem, which includes various payment applications, is expected to benefit significantly from lower interest rates as businesses seek more affordable capital [13] - Block's gross profit rose 12% year-over-year in the first half of the year, with Square contributing 40% of that profit, suggesting potential for higher growth [14]

Group 1 - The Federal Reserve has implemented a 25 basis point cut to interest rates, which is expected to enhance investor sentiment towards income funds [1] - A lower interest rate environment is likely to benefit credit funds, making them more attractive to investors [1] - The article emphasizes the importance of a diversified investment strategy that includes classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to boost investment income while achieving total returns comparable to traditional index funds [1]

Core Insights - The first interest rate cut of 2025 is anticipated to influence income funds positively, particularly those with a portfolio of debt investments [1] Group 1: Investment Strategies - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds is suggested to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]