What we’re reading (8/5)
“Bets On Fed Rate Cuts Are Sweeping Through The US Bond Market” (Bloomberg). “Positioning in options tied to the Secured Overnight Financing Rate, which closely tracks the expected trajectory of US monetary policy, shows investors readying for the possibility of cuts in each of the three remaining meetings this year, bringing down rates by a total of 75 basis points in 2025. Other plays on SOFR have included bets on a 50 basis-point cut at the central bank’s next meeting, in September.”
“Why America’s New Crypto Regime Makes Other Countries Nervous” (Kenneth Rogoff). “[B]y proffering an official stamp of approval, the U.S. is potentially providing a powerful vehicle for facilitating tax evasion and all manner of illegal activity worldwide. It doesn’t have to be this way.”
“Trump Says He Will Decide On Fed Governor Before End Of The Week” (Bloomberg). “President Donald Trump said he would make his decision on a replacement for outgoing Federal Reserve Governor Adriana Kugler this week as he looks to make his imprint on the central bank’s monetary policy. The Fed announced on Friday that Kugler would resign from her seat on the board of governors before her term is up in January, giving Trump an earlier than expected opportunity to tap a candidate more closely aligned with his calls for the central bank to lower interest rates.”
“Electricity Costs Rise Amid Data Center Boom” (Axios). “Electricity costs are rising nationwide — and could get even higher for some amid the explosion in data centers powering AI and more. Surging power bills could further stress many Americans' budgets as pretty much everything else gets more expensive, too.”
“Andreessen Horowitz Fled Delaware And Moved To Nevada. It’s More About Vibes Than Substance.” (Business Insider). “Andreessen Horowitz, often called a16z, cited several reasons for moving to Nevada: stronger legal protection for corporate directors, tighter limits on shareholder lawsuits, and a business-friendly court system. It said this sets Nevada apart from Delaware, where an outsize share of America's business lawsuits are filed. Some critics say a16z's beef with Delaware's corporate laws don't make much sense because it's not a corporation; all the entities that it moved to Nevada are LLCs, or limited liability companies. ‘They're either being accidentally imprecise or intentionally disingenuous,’ said Samantha Prince, a law professor at Penn State University. ‘Andreessen is criticizing Delaware and its statutory corporate framework, but that doesn't apply to LLCs.’”
