| | HK$ | | --- | --- | | Opening Aggregate Balance (開市總結餘) | 53,9 | | Closing Aggregate Balance (收市總結餘) | 54,0. | | Change Attributable to (變動原因) | | | o Market Activities* (貨幣市場運作*) | | | . Interest Payment/Issuance of Exchange Fund Bills and Notes# (外匯基金票據及債券所付利息或新發行量#) | | | . Discount Window Reversal (退還貼現窗折出資金) | | | o Discount Window Today (今日貼現窗運作) | + | 智通财经APP获悉，9月22日，香港金管局通过贴现窗口向银行提供4000万港元流动性。 ...

Core Viewpoint - Federal Reserve governor Lisa Cook's declaration of her condo as a "vacation" and "second home" in loan filings may challenge the Trump administration's allegations of mortgage fraud against her, which were used as justification for her dismissal from the Fed's board [1] Group 1 - Lisa Cook purchased a condo in 2021 and classified it as a "vacation" and "second home" in official documents [1] - The Trump administration claimed that Cook engaged in mortgage fraud, leading to her firing from the Federal Reserve [1] - The classification of the condo could undermine the allegations made by the Trump administration [1]

Core Viewpoint - The article highlights the criticism from U.S. Treasury Secretary Mnuchin towards the Federal Reserve, emphasizing concerns over its independence due to its expanded functions and the use of non-standard policies [1][2]. Group 1: Criticism of the Federal Reserve - Mnuchin argues that the Federal Reserve's overreach in its responsibilities has jeopardized its credibility and political legitimacy, calling for a comprehensive review of the institution [1][2]. - The article indicates that the Trump administration's criticism of the Federal Reserve has escalated, questioning not only the need for interest rate cuts but also the overall operational model of the Fed [1][3]. Group 2: Call for Independent Review - Mnuchin demands an honest, independent, and non-partisan review of the entire Federal Reserve, including its monetary policy, regulation, communication, staffing, and research [3]. - He expresses anticipation for a response from the Federal Reserve regarding his call for an internal review, emphasizing that good management is achieved through action rather than mere discussion [3]. Group 3: Regulatory Framework Concerns - Mnuchin criticizes the Dodd-Frank Act for significantly expanding the Federal Reserve's regulatory scope, which he believes has blurred the lines between monetary and fiscal policy [4]. - He suggests a more coherent framework where the FDIC and OCC lead bank regulation while the Federal Reserve focuses on macro monitoring, lender of last resort liquidity, and monetary policy [4]. Group 4: Monetary Policy Experimentation - Mnuchin compares the Federal Reserve's new operational model to an uncontrolled experiment, indicating that the unconventional monetary policy tools released post-2008 financial crisis have altered the Fed's policy framework with unpredictable consequences [5][6]. - He cites the Fed's failure to accurately predict GDP growth, highlighting a significant overestimation of over $1 trillion in GDP during the recovery period [6]. Group 5: Inequality and Quantitative Easing - The article discusses Mnuchin's criticism of the quantitative easing (QE) policies post-2008, arguing that they disproportionately benefited asset owners and exacerbated wealth inequality [7]. - He points out that while large corporations benefited from low-cost debt, younger and less affluent families were left behind, suffering the most from inflation and missing out on asset appreciation opportunities [8]. Group 6: Employment Data and Federal Reserve Accountability - The article notes that the recent non-farm payroll report showed only 22,000 jobs added in August, significantly below expectations, leading to further blame directed at the Federal Reserve from Trump administration officials [9]. - Trump and other officials assert that the Fed's high-interest rates are hindering economic growth and that a reconsideration of policy is necessary in light of the weak employment data [10].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) reported an increase in overnight borrowing to its highest level in nearly two months, indicating a tightening liquidity situation in the market [1] Group 1: Borrowing Data - The HKMA lent out 1.4 billion Hong Kong dollars through its discount window, marking the highest amount since July 8 [1]

Group 1 - U.S. Treasury Secretary Scott Bansenet calls for an internal review by Federal Reserve Chairman Jerome Powell regarding allegations of mortgage fraud against Fed Governor Lisa Cook [1] - Bansenet emphasizes that if a Federal Reserve official commits mortgage fraud, they should not hold a position in a major financial regulatory agency [1] - President Donald Trump has taken action to remove Cook from her position, with her lawyer planning to file a lawsuit [1] Group 2 - Bansenet mentions that current Fed governors Christopher Waller and Michelle Bowman expressed dissenting opinions on recent Fed policy decisions, advocating for interest rate cuts [2] - The selection process for Powell's successor is ongoing, with Bansenet planning to interview candidates after Labor Day and submit three to four names to Trump [2] - Bansenet asserts that the Federal Reserve has deviated from its core monetary policy mission since the 2008 financial crisis and needs to return to its fundamental objectives [2]

Group 1 - The total amount of loans from the Federal Reserve's discount window as of the week ending August 20 was $4.41 billion, a decrease from $4.62 billion in the previous week [1]

Core Viewpoint - President Trump has nominated Stephen Miran, the chairman of the Council of Economic Advisers, to fill the upcoming vacancy on the Federal Reserve Board, which is currently held by Adriana Kugler, whose term ends in January [1][4][7] Group 1: Nomination Details - The nomination of Miran is intended to fill the position left by Kugler, who will officially resign on August 8 [7] - Miran has been working with Trump since the beginning of his second term and is noted for his exceptional expertise in economics [4] - The nomination requires approval from the U.S. Senate [4] Group 2: Miran's Background and Views - Miran previously served as a senior economic advisor at the U.S. Treasury during Trump's first term and holds a Ph.D. in economics from Harvard University [4] - He has been a critic of the Federal Reserve's recent performance and advocates for fundamental reforms within the institution [8] Group 3: Proposed Reforms - In a 24-page reform plan co-authored with Dan Katz, Miran attributes the Federal Reserve's policy errors to "groupthink" [9] - The report argues that the Federal Reserve has extended its authority into political realms beyond its statutory limits, raising questions about its operational independence [10] - A notable reform proposal suggests separating monetary policy formulation from banking regulation and oversight functions, which would require legislative action [10][11]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has activated the "weak-side convertibility guarantee" at 7.85, indicating a significant shift in the Hong Kong dollar's exchange rate dynamics due to various market factors [1][2]. Group 1: Currency Exchange Dynamics - The HKMA bought 39.25 billion HKD on July 31, reducing the banking system's balance to 82.55 billion HKD on August 1 [1]. - The last activation of the 7.85 weak-side guarantee occurred on July 16, involving 14.83 billion HKD [1]. - Since June, the HKMA has intervened in the market seven times, absorbing a total of 911.08 billion HKD, which is 70% of the hot money inflow in May [1]. Group 2: Interest Rate and Market Conditions - The HKMA's president, Yu Weiwen, indicated that multiple factors have contributed to the weakening of the Hong Kong dollar, including ample liquidity in the market leading to lower local interest rates and an expanded interest rate differential with the U.S. [1][2]. - There is a potential for the "weak-side convertibility guarantee" to be triggered again, as the banking system's balance decreases and local interest rates may rise, aligning with the design of the linked exchange rate system [2]. Group 3: Market Demand for HKD - The peak period for dividend payouts by listed companies is nearing its end, which may reduce demand for HKD [3]. - Non-local companies are expected to convert HKD raised from IPOs or bond issuances back to their home currencies [3]. - The demand for HKD related to half-year settlements has largely been met, leading to a decrease in market demand for the currency [3].

Group 1 - The Hong Kong Monetary Authority (HKMA) injected liquidity of 20 million Hong Kong dollars into the banking system through the discount window [1]

Core Insights - The Hong Kong Monetary Authority (HKMA) reported a decrease in the composite interest rate to 1.26% at the end of June 2025, down 35 basis points from 1.61% at the end of May 2025 [1] Summary by Category Interest Rates - The composite interest rate reflects the average funding cost for banks and has decreased significantly in June 2025 [1] - The reduction in the composite interest rate is primarily attributed to a decrease in the weighted funding cost of deposits during the month [1]