Finance

In the first meeting led by new Chair Kevin Warsh, the Federal Reserve maintained interest rates at 3.5%–3.75% but adopted a decidedly hawkish tone. Updated quarterly projections revealed that half of the policymakers expect at least one rate increase in 2026 to combat persistent 4.2% inflation. Consequently, money markets have fully priced in a quarter-point hike by October, driving the policy-sensitive 2-year Treasury yield to its highest level in over a year.

Shares of SpaceX fell for two consecutive days following its high-profile market debut, reflecting broader investor caution regarding stretched valuations in growth sectors. Despite this pullback, the equity capital markets are seeing a significant surge in activity, with Goldman Sachs raising its 2026 IPO proceeds forecast to $225 billion. Large-scale transactions, including a massive $85 billion secondary offering by Alphabet, indicate that financial conditions remain favorable for well-capitalized firms.

Bitcoin and Ethereum traded lower this week, pressured by a stronger dollar and expectations of a more restrictive monetary policy. Industry reports indicate that Bitcoin has been trading below its average mining cost for several months, intensifying pressure on digital asset miners. While some smaller AI-focused blockchain projects saw gains, the broader crypto market remains in a period of consolidation as the next supply-halving event is still nearly two years away.