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MNI INTERVIEW: Hungary Needs More Growth For Fiscal Target

(MNI) London
Only higher growth looks likely to keep the government's fiscal targets on track, the State Audit chief says.

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Improving the functionality of the discount window would help address lessons about liquidity learned last spring, Fed regulator says.

Sweden Macro Signal - May 2024: Recovery In Sight

“Green shoots” are beginning to emerge in the Swedish economy, supported by easing policy rates, improving sentiment and positive real wage growth.

Political Risk

MNI Interview With Head of Hungary's State Audit Office

  • MNI interviews the head of Hungary's state audit office -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
MNI EXCLUSIVE

House Of Reps To Consider Two Crypto Bills This Week

The House of Representatives will consider two pieces of legislation this week which could bolster the crypto industry. The first, H.R. 4763, would take some regulatory powers away from the Securities and Exchange Commission by reclassifying crypto as a commodity rather than a security. The second, H.R. 5403, would bar the Federal Reserve from issuing its own digital currency.

  • Bloomberg notes: "SEC Chairman Gary Gensler has said almost all crypto tokens are securities. During his tenure, the SEC has levied a slew of enforcement actions against crypto firms for issuing or allowing users to trade unregistered securities."
  • Ranking Democrat of the Financial Services Committee, Rep Maxine Waters (D-CA), said “there is simply no good reason to throw all of that away [longstanding financial regulation] in favor of a complicated new framework that caters to a single industry that refuses to follow the rules."
  • Democrats said in the committee report: “By shifting a substantial portion of the digital assets market to the commodities regime, the bill removes several critical protections that apply to securities and not commodities.”
  • Politico notes: “Watch closely to see whether House Democratic leaders whip against these: The backdrop is growing Democratic dismay with the Biden administration’s tough-on-crypto stance, which could pave the path for industry friendly regulation if Trump wins in November.”

All of the gilts sold in the 15-year area

  • All of the sales around the 15-year area with GBP642.2mln of the 4.75% Dec-38 gilt and GBP107.8mln of the 1.125% Jan-39 gilt sold.
  • There were also a lot of offers for the 4.25% Mar-36 gilt (the GBP906mln a larger size than the total amount sold across all medium gilts today) - but the BOE didn't accept any of the offers for this gilt.
  • Note, gilt futures fell around 15 ticks going into the bidding deadline (the 5 mins before) - but that move has all been revered so we trade back at 97.70 at writing.

Schumer To Hold Messaging Vote On Bipartisan Border Security Bill

Senate Majority Leader Chuck Schumer (D-NY) will bring the bipartisan border security package to the floor for a vote this week. The bill, which failed to pass the Senate earlier this year after an intervention former President Donald Trump, is expected to fail again with most Republicans and some Democrats likely to vote against the package.

  • Despite the high probability of failure, the vote will serve as an exercise in messaging on one of the most salient issues of the 2024 presidential election. It will offer President Biden flexibility to push for some executive actions on the border and provide cover for vulnerable Democrats defending seats in red states. Notably, Senators Jon Tester (D-MO) and Sherrod Brown (D-OH) – both needing to significantly outperform Biden to hold their seats - can limit their exposure to the issue by arguing they have voted in favour of a strict border package.
  • Schumer said in a letter to Democrat lawmakers: “Back in January, the former President urged Congressional Republicans to kill the bipartisan bill... The American people do not have the luxury of playing partisan blame games ... American people deserve political leaders who will work towards bipartisan solutions...”
  • Senator Brian Schatz (D-HI) said: “We are not going to stop talking about this… We’re tired of being on defense about this. Frankly, our argument is better. The Republicans unanimously tanked tough border policy because their boss told them to.”

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