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12 May 2026, 14:37

French central bank warns 98% of Europe stablecoins are USD

🚨 98% of stablecoins in Europe track USD, warns the French central bank. Top European officials urge faster action on euro-based digital money. Continue Reading: French central bank warns 98% of Europe stablecoins are USD The post French central bank warns 98% of Europe stablecoins are USD appeared first on COINTURK NEWS .

12 May 2026, 14:35

Silver Slips as Hot US Inflation Boosts Dollar, Despite Steady Industrial Support

BitcoinWorld Silver Slips as Hot US Inflation Boosts Dollar, Despite Steady Industrial Support Silver prices edged lower on Wednesday as a hotter-than-expected US inflation reading propelled the dollar higher, outweighing continued support from robust industrial demand in sectors such as solar energy and electronics. The precious metal, often caught between its monetary and industrial roles, slipped as traders recalibrated expectations for Federal Reserve interest rate policy. Inflation Data Reshapes Rate Outlook The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.4% month-over-month in January, above the consensus forecast of 0.3%. On an annual basis, headline inflation came in at 3.1%, slightly higher than the 2.9% economists had projected. Core CPI, which excludes volatile food and energy prices, also exceeded expectations, rising 0.4% month-over-month. The data reinforced the narrative that the Federal Reserve’s fight against inflation is not yet complete, reducing the likelihood of an early rate cut. Markets now price in a lower probability of a cut at the Fed’s March meeting, pushing the first potential move to mid-2024 or later. A higher-for-longer interest rate environment typically weighs on non-yielding assets like silver and gold. Dollar Strength Pressures Precious Metals The US Dollar Index (DXY) surged following the CPI release, climbing above 104.5 as investors sought the greenback’s relative yield advantage. A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies, dampening demand. Silver, which has a higher beta than gold, often experiences sharper moves during such repricing events. Spot silver was last down 1.8% at $22.45 per ounce, after briefly dipping below the $22.30 level intraday. Gold also declined, falling 0.6% to $2,025 per ounce, but held up relatively better given its stronger safe-haven appeal. Industrial Demand Provides a Floor Despite the macro headwinds, silver’s industrial applications continue to offer structural support. The Silver Institute projects global industrial demand to reach a record 700 million ounces in 2024, driven largely by photovoltaic (solar panel) manufacturing and the expanding electronics sector. Silver is a critical component in solar cells, electrical contacts, and 5G infrastructure. Analysts note that while monetary policy shifts can create short-term volatility, the long-term demand outlook remains constructive. ‘The industrial side of the story is real and growing,’ said one metals strategist. ‘But in the near term, silver will dance to the tune of the dollar and interest rate expectations.’ Conclusion The tug-of-war between macro pressures and industrial fundamentals is likely to persist for silver in the coming weeks. Traders will watch upcoming Fed commentary and further economic data for clues on the rate path. For now, the dollar and inflation narrative are in the driver’s seat, but the underlying demand story suggests silver may find support on any deeper pullback. FAQs Q1: Why does US inflation affect silver prices? Higher inflation often leads to expectations of tighter monetary policy, which strengthens the dollar and raises the opportunity cost of holding non-yielding assets like silver. This typically pressures prices downward. Q2: How does industrial demand support silver? Silver is essential in manufacturing solar panels, electronics, batteries, and medical devices. Rising demand from these sectors provides a price floor, even when macro factors are negative. Q3: Is silver a good hedge against inflation? Historically, silver has acted as an inflation hedge over the long term, but its price is more volatile than gold and heavily influenced by industrial cycles and monetary policy shifts. This post Silver Slips as Hot US Inflation Boosts Dollar, Despite Steady Industrial Support first appeared on BitcoinWorld .

12 May 2026, 14:30

Fed’s Goolsbee: Inflation Remains a ‘Problem’ for the U.S. Economy

BitcoinWorld Fed’s Goolsbee: Inflation Remains a ‘Problem’ for the U.S. Economy Chicago Federal Reserve President Austan Goolsbee delivered a sobering assessment of the U.S. economic landscape on Tuesday, stating plainly that the nation continues to grapple with a significant inflation challenge. Speaking at an economic forum in Chicago, Goolsbee acknowledged that while progress has been made, the battle against rising prices is far from over. Goolsbee’s Assessment: A Persistent Challenge Goolsbee’s remarks come at a critical juncture for the Federal Reserve, which has been navigating a delicate path between curbing inflation and avoiding a recession. He emphasized that the central bank’s primary focus remains on bringing inflation down to its 2% target, a goal that has proven more stubborn than many anticipated. The Fed official noted that recent data shows inflation has moderated but remains above the desired level, particularly in key sectors like housing and services. His comments underscore a growing consensus among policymakers that interest rates may need to stay higher for longer than previously expected. Markets have been closely watching Fed communications for clues about the timing of potential rate cuts, and Goolsbee’s tone suggests patience is still required. Market and Economic Implications The immediate reaction in financial markets was muted but cautious, with bond yields edging higher as traders recalibrated expectations. The S&P 500 dipped slightly as investors digested the hawkish undertone. Goolsbee’s statement reinforces the view that the Fed is unlikely to ease monetary policy in the near term, a stance that could keep borrowing costs elevated for businesses and consumers. For the broader economy, persistent inflation means households continue to face higher prices for essentials like food, rent, and transportation. While wage growth has helped offset some of the burden, real purchasing power remains under pressure. Small businesses, in particular, are feeling the squeeze as input costs remain elevated. What This Means for the Fed’s Next Moves Goolsbee’s comments align with recent statements from other Fed officials who have stressed the need for more evidence that inflation is sustainably declining before any policy pivot. The next Federal Open Market Committee (FOMC) meeting is scheduled for late September, and markets are currently pricing in a high probability that rates will remain unchanged. A rate cut is not expected until at least the first quarter of 2025, according to CME FedWatch data. The Chicago Fed president also highlighted the importance of monitoring inflation expectations, which have remained relatively well-anchored despite the recent price pressures. However, he warned that any sustained uptick in expectations could complicate the Fed’s task. Conclusion Goolsbee’s blunt acknowledgment that inflation remains a problem serves as a reality check for markets and consumers hoping for a rapid easing of monetary policy. The path forward is likely to be gradual, with the Fed prioritizing price stability over short-term economic stimulus. For now, the message from the central bank is clear: the fight against inflation is not yet won. FAQs Q1: What did Fed’s Goolsbee say about inflation? He stated that inflation remains a significant problem in the United States, emphasizing that the Fed’s work is not done in bringing prices under control. Q2: How might Goolsbee’s comments affect interest rates? His remarks suggest the Fed is likely to keep interest rates higher for longer, reducing the probability of near-term rate cuts. Q3: What sectors are most affected by persistent inflation? Housing, services, and essential consumer goods like food and transportation continue to see elevated price increases, impacting household budgets and business costs. This post Fed’s Goolsbee: Inflation Remains a ‘Problem’ for the U.S. Economy first appeared on BitcoinWorld .

12 May 2026, 14:28

Billionaire Ray Dalio explains why Bitcoin ‘hasn’t played the safe-haven role’

Bridgewater Associates founder Ray Dalio , has once again highlighted the distinctions between Bitcoin ( BTC ) and gold . He argued that the cryptocurrency has not fulfilled the expectations many investors placed on it as a reliable safe-haven asset during periods of market stress and economic uncertainty, Dalio said in an X post on May 11. In his post, Dalio pointed to Bitcoin’s transparent on-chain ledger, arguing that its traceable nature makes it less attractive for large institutions such as central banks. He contrasted this with gold’s long-established role in the global financial system, supported by deep, widespread holdings and a unique status few assets can match. Dalio also highlighted Bitcoin’s tendency to move alongside technology stocks. During liquidity crunches or periods of market stress, investors often sell Bitcoin alongside other risk assets to raise cash instead of treating it as a defensive hedge. While Bitcoin gets a lot of attention, it hasn’t played the safe-haven role many expected. In my view, there are a few reasons why. First, Bitcoin lacks privacy. Transactions can be monitored and potentially controlled, which is why central banks aren’t looking to hold it.… pic.twitter.com/j78NJdvrOw — Ray Dalio (@RayDalio) May 11, 2026 He noted that this pattern has been visible in recent cycles, with gold outperforming while Bitcoin experienced sharp drawdowns. The billionaire investor further argued that Bitcoin’s market remains relatively small and more vulnerable to influence compared to the vast, centuries-old gold market, reinforcing the precious metal’s position as a leading store of value. Dalio’s stance on Bitcoin Notably, Dalio has consistently argued that there is “only one gold,” emphasizing its unmatched role in central bank reserves and as a reliable hedge during economic stress. Dalio’s stance on Bitcoin has evolved. After initially approaching the asset cautiously, he later acknowledged its potential as an alternative store of value and acquired a small personal holding. In 2025, he recommended investors allocate about 15% of their portfolios to gold or Bitcoin combined as a hedge against debt and fiat currency risks, though he personally favored gold and kept only around 1% exposure to Bitcoin. Drawing on decades of studying market cycles, Dalio has warned about bubble-like conditions, rising debt, and shifting global power dynamics. While Bitcoin has gained adoption through corporations and ETFs, he maintains that it behaves more like a risk asset than a true safe haven, unlike gold, which continues to hold a central role for institutions and long-term investors seeking stability. Disclaimer : The featured image in this article is for illustrative purposes only and may not accurately reflect the true likeness of the individuals depicted. The post Billionaire Ray Dalio explains why Bitcoin ‘hasn’t played the safe-haven role’ appeared first on Finbold .

12 May 2026, 14:25

Powell Says AI-Driven Growth Complicates Fed’s Rate Path, NBC Reports

BitcoinWorld Powell Says AI-Driven Growth Complicates Fed’s Rate Path, NBC Reports Federal Reserve Chair Jerome Powell acknowledged that accelerating productivity growth fueled by artificial intelligence is creating new uncertainties for the central bank’s interest rate decisions, according to a report from NBC News. The admission signals that the traditional relationship between employment, inflation, and monetary policy may be shifting in an era of rapid technological change. AI Productivity and the Monetary Policy Puzzle In remarks shared with NBC, Powell pointed to emerging evidence that AI adoption is boosting productivity across several sectors of the U.S. economy. While higher productivity can support non-inflationary growth, it also complicates the Fed’s ability to forecast the neutral rate of interest — the level that neither stimulates nor restricts the economy. This makes the path for potential rate cuts later this year less clear than many market participants had hoped. The Fed has held its benchmark interest rate steady at 5.25% to 5.5% since July 2024, following an aggressive tightening cycle. Markets have been pricing in rate cuts for mid-2025, but Powell’s latest comments suggest the central bank is in no rush to ease policy, especially if AI-driven gains keep the economy running hot without stoking inflation. Implications for Investors and the Broader Economy For investors, the key takeaway is that the Fed is now weighing a new variable: whether AI-driven productivity is a temporary boost or a structural shift. If productivity gains prove durable, the economy could grow faster without overheating, potentially delaying rate cuts. Conversely, if the productivity surge fades, the Fed may face renewed pressure to lower rates to support growth. The uncertainty has already rippled through bond markets, with yields on 10-year Treasury notes fluctuating in recent sessions. Stock markets, particularly in the technology sector, have shown mixed reactions as traders reassess the timing of monetary easing. What This Means for Borrowers and Businesses For businesses and consumers, the message is that borrowing costs are likely to remain elevated for longer than previously anticipated. Mortgage rates, credit card rates, and business loan costs are unlikely to decline sharply in the near term. Companies planning capital expenditures tied to AI adoption may need to factor in a higher cost of capital for the foreseeable future. Conclusion Powell’s acknowledgment that AI is reshaping the economic landscape represents a significant shift in the Fed’s public communication. The central bank is now navigating uncharted territory where technological innovation and monetary policy intersect. For now, the path of interest rates remains data-dependent, with AI productivity data becoming an increasingly important input in the Fed’s decision-making process. FAQs Q1: Why does AI-driven growth complicate the Fed’s rate decisions? AI-driven productivity can boost economic growth without triggering inflation, making it harder for the Fed to determine whether the economy is overheating. This uncertainty complicates decisions on when to cut or raise interest rates. Q2: When does the market expect the Fed to cut rates? Markets currently anticipate the first rate cut in mid-2025, but Powell’s recent comments suggest the timing is uncertain and dependent on incoming economic data, including productivity metrics tied to AI adoption. Q3: How does this affect everyday consumers? If the Fed holds rates higher for longer, borrowing costs for mortgages, car loans, and credit cards will remain elevated. Consumers should expect no immediate relief on interest payments. This post Powell Says AI-Driven Growth Complicates Fed’s Rate Path, NBC Reports first appeared on BitcoinWorld .

12 May 2026, 14:20

Euro Slips as Hot US Inflation Data Reinforces Fed’s Higher-for-Longer Stance

BitcoinWorld Euro Slips as Hot US Inflation Data Reinforces Fed’s Higher-for-Longer Stance The euro weakened against the US dollar on Wednesday after a stronger-than-expected US inflation report dampened hopes for an early Federal Reserve rate cut, reinforcing expectations that interest rates will remain elevated for an extended period. Inflation Data Shifts Market Expectations The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.4% in January on a seasonally adjusted basis, pushing the annual inflation rate to 3.1%, above the 2.9% forecast by economists. Core CPI, which excludes volatile food and energy prices, climbed 0.4% month-over-month, holding at 3.9% year-over-year, defying expectations of a decline. The hotter-than-anticipated figures triggered a sharp repricing in rate expectations. According to CME Group’s FedWatch Tool, the probability of a rate cut at the Fed’s March meeting fell to below 10%, while the odds of the first cut occurring in June dropped significantly. Markets now price in fewer total cuts for 2024, aligning with the Fed’s own cautious guidance. EUR/USD Reaction and Technical Levels The EUR/USD pair fell approximately 0.6% on the day, sliding below the 1.0700 handle for the first time in over a week. The single currency found support near 1.0670 before stabilizing, but analysts warn that further downside is possible if US economic data continues to show resilience. “The inflation print was a clear reminder that the last mile of disinflation is proving stubborn,” said a senior currency strategist at a European bank. “For the euro, this means a stronger dollar environment for longer, especially if the European Central Bank moves toward easing before the Fed.” Technical indicators show the pair trading below its 50-day and 200-day moving averages, a bearish signal. The next key support level lies at 1.0650, followed by the October 2023 low near 1.0450. Resistance now sits at 1.0750 and 1.0800. Why This Matters for Investors and Businesses A persistently strong dollar driven by higher US rates has broad implications. European exporters face headwinds as their goods become more expensive in dollar-denominated markets. Conversely, US-based multinationals with significant European revenue may see translation benefits. For investors, the dollar’s strength pressures emerging-market currencies and commodities priced in dollars, including gold and oil. Consumers and businesses in the eurozone may also feel the pinch through imported inflation, as a weaker euro raises the cost of dollar-priced imports such as energy and raw materials. This complicates the European Central Bank’s policy path, as it balances inflation concerns with slowing economic growth. Outlook: What to Watch Next Currency markets will now focus on upcoming eurozone inflation data and ECB communications for clues on the divergence between Fed and ECB policy paths. Any signs that the ECB is preparing to cut rates sooner than the Fed could add further pressure on the euro. Meanwhile, US producer price index (PPI) data and retail sales figures later this week will provide additional cues on the strength of the US economy and the trajectory of Fed policy. Analysts caution that the “higher-for-longer” narrative is likely to persist as long as inflation remains above the Fed’s 2% target. The euro’s near-term direction will depend heavily on whether the US economy shows signs of cooling or continues to defy expectations. Conclusion The euro’s decline against the dollar reflects a market recalibrating its expectations for US interest rates following a hot inflation report. With the Fed unlikely to ease policy in the near term, the dollar is poised to remain strong, creating challenges for European exporters and complicating the ECB’s monetary policy decisions. Traders and businesses should brace for continued volatility as economic data drives the next moves in the currency pair. FAQs Q1: Why did the euro fall after the US inflation data? The euro fell because the stronger-than-expected US inflation report reduced the likelihood of early Federal Reserve rate cuts, boosting the US dollar as investors anticipated higher-for-longer interest rates in the US. Q2: What does “higher-for-longer” mean for the EUR/USD exchange rate? “Higher-for-longer” refers to the expectation that the Federal Reserve will keep interest rates elevated for an extended period. This typically strengthens the dollar against the euro, as higher US rates attract capital inflows and increase the dollar’s yield advantage. Q3: How does a weaker euro affect European consumers and businesses? A weaker euro makes imports priced in dollars, such as oil and raw materials, more expensive, potentially fueling inflation. For European exporters, it can make their goods cheaper for foreign buyers, but it also increases the cost of imported inputs, squeezing profit margins. This post Euro Slips as Hot US Inflation Data Reinforces Fed’s Higher-for-Longer Stance first appeared on BitcoinWorld .