Fed’s 0.25% rate hike, TikTok’s testimony before Congress, SEC cracks down on Coinbase: 3 things to know
Yahoo Finance Live’s Julie Hyman summarizes three key topics to watch for this morning.
JULIE HYMAN: Let's get right to the three things you need to know to start off your morning. First thing you need to know, the Federal Reserve raised interest rates by a quarter point, defying a minority of economists who predicted a pause. In a press conference, Fed Chair Jerome Powell made it clear that the Fed is not backing down from its inflation battle and expressed confidence that the banking sector is sound.
Now around the same time, Treasury Secretary Janet Yellen was testifying before Congress about the failure of Silicon Valley Bank, and she said she has not considered, quote, "blanket insurance" on all US bank deposits. She made her comments while we saw stocks go lower.
Second thing you need to know, the CEO of TikTok is set to testify before Congress today at 10:00 AM. The House Energy and Commerce Committee will grill him on TikTok's relationship with its Chinese owner ByteDance and the platform's handling of user data.
This hearing comes as some members of Congress push for a nationwide ban of the app. They say it poses a threat to national security. President Biden is demanding that TikTok break away from ByteDance or face the consequences.
Third thing you need to know, the Securities and Exchange Commission is cracking down on Coinbase. The digital-currency platform said it received a so-called Wells notice from the SEC. That describes its plans to take legal action against the company. The letter hones in on several aspects of Coinbase's business, including assets on its crypto exchange, its Coinbase Earn service, and its wallet service.
This comes from a probe that started back in mid 2022 prior to the collapse of FTX. Coinbase's CEO said that the company is, quote, "right on the law," and he remains confident in the platform.