![]() Also in play is the Fed’s move to shrink the size of its balance sheet, which means that the central bank is withdrawing support from critical bond markets that serve as benchmarks for global lending.Īsset values have been hard hit by the Fed’s actions and there are broad worries about liquidity in markets for securities like U.S. Raskin weighed in as many market participants fear the Fed’s rate rises, which will almost certainly run into next year and will lift the Fed’s short-term target rate to levels not seen in decades, will cause some sort of major stress in the financial sector. With the Fed motivated by its monetary policy goals, “financial stability is, my guess, not fully integrated into decision making.” “When you have a lot in motion, stuff happens, like stuff can break,” she said, adding “you see your vulnerabilities any time when interest rates start to increase.” “Things are fragile” due to so many developments, Raskin said. She said she was not sure Fed officials were paying close enough attention to the issue given their laser-like focus on taking action to lower inflation from 40-year highs. Raskin did not say where trouble would come from if it arrives, only that the current situation, with Fed action, disrupted economies and risks from Russia's war on Ukraine, is ripe to generate some ugly confluence of events. Raskin was also a Treasury official in the Obama Administration and before that, she served as Fed governor from 2010 to 2014. She had been named to be the Fed’s point person on financial regulation last year before withdrawing. Raskin is currently a law professor at Duke University. The board, which is the main governing body of the Federal Reserve, consists of seven members who serve a term of four years.NEW YORK, Oct 20 (Reuters) - As the Federal Reserve pushes forward with aggressive rate rises to bring down surging inflation it may unintentionally break something in the financial sector, a risk it may not be thinking enough about, a former top government policymaker said.Ĭiting the recent heavy market turbulence that struck the United Kingdom, Sarah Bloom Raskin told a University of Pennsylvania conference Thursday that those overseas events were “a warning of sorts” for the United States. If leadership at the Fed had shifted, there would have been a period of learning, delaying current workstreams, and potentially leading to a shift in views towards digital assets,” Baldwin said. “Fed Chair (Jerome) Powell and Governor (Lael) Brainard have been very involved in digital assets to date and have articulated that stablecoins and CBDCs can coexist. central bank’s governing panel may not have much sway in determining the course of crypto regulations, said Robert Baldwin, director of policy at the Association for Digital Market Assets. Plus, the Fed’s leadership isn’t changing, and the additions to the U.S. None of the three candidates – Sarah Bloom Raskin, Lisa Cook or Philipp Jefferson – has expressed strong opinions about cryptocurrencies, based on a search of web articles. Senate Banking Committee hearing of President Joe Biden’s three nominees to the Federal Reserve Board might carry limited significance for the future of crypto. Nominees for the Federal Reserve board bring a blank slate on crypto views The Wormhole team has assured the community that its ETH supply would be replenished to “ensure wETH is backed 1:1,” but there is no word yet on where those funds will come from or when.Īlso Read| Bharat Dynamics shares hit 52-week high on inking agreement with Indian Army The hack took place on the Solana side of the bridge and there are fears Wormhole’s bridge to Terra could be similarly vulnerable. The Wormhole team has offered a $10M bug bounty for the return of the funds. ![]() This is the largest crypto hack of 2022 so far and the second largest DeFi hack to date. Wormhole is a token bridge that allows users to send and receive crypto between Ethereum, Solana, BSC, Polygon, Avalanche, Oasis, and Terra without the use of a centralized exchange (CEX). The Wormhole token bridge experienced a security exploit, resulting in the loss of 120,000 wETH tokens ($321 million) from the platform.
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