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Federal Reserve policymakers are expected to trim their interest rate target by a quarter percentage point at this week’s meeting, lowering the range to 3.5–3.75 percent. On its face, that might seem like a standard adjustment. The Fed reduced rates by a similar 25 basis points at its previous two policy meetings. Yet this one stands out, not because of the size of the move, but because of the unusually visible division among policymakers.

Fed officials appear more divided than at any time in recent history. Some are increasingly uneasy about a cooling labor market, while others remain focused on inflation that has not yet returned to the Fed’s two-percent goal. What makes this disagreement noteworthy is the fact that both sides can plausibly claim the data is on their side.

The latest Monetary Policy Report, released by AIER’s Sound Money Project this week, shows that the leading monetary policy rules offer support for both sides of the debate. The rules point to a fairly wide range for the Fed’s interest rate target — from roughly 3.65 to 4.25 percent. That spread is large enough to give both camps reasonable footing.

In short, the disagreement is unusual, but appropriate.

Why Are Officials Split?

Much of the division simply reflects what each side chooses to prioritize. Officials inclined to ease point to softer hiring, shorter workweeks, and early signs that wage growth is losing steam – developments that normally justify lower rates. Those more hesitant to cut focus on inflation, which, while lower than its peak, remains stubbornly above the Fed’s 2 percent goal.

While both groups are drawing from the same information, they are weighing the risks differently. And because the economy itself is sending mixed signals, the monetary policy rules – designed to translate economic fundamentals into rate guidance – can be viewed as supporting either camp.

What the Rules Say

Monetary policy rules offer a disciplined way to evaluate economic conditions without putting too much weight on sentiment or narrative. Right now, they broadly mirror the debate unfolding inside the Fed’s rate-setting committee.

Taylor Rules

Economists have proposed many rules for setting monetary policy. The most familiar is the Taylor Rule, which suggests that the Fed should adjust interest rates when inflation deviates from target or real economic activity deviates from its long-run potential. When inflation runs above target, the rule prescribes higher interest rates to cool demand and contain prices. When output or employment fall below potential, it recommends lower rates to support growth.   

The original Taylor Rule calls for a rate in the current target range, close to 3.9 percent, which would argue for no cut at the upcoming meeting.

But monetary policy often needs to act preemptively in anticipation of future developments, and the original Taylor Rule is necessarily backward-looking. Economists can account for this by including forward-looking, forecasted data in the rule. The Fed also prefers to minimize interest rate volatility, which can destabilize expectations and credit markets. By accounting for the most recent Fed policy rate, the Taylor Rule can also smooth out interest rate changes.

A modified Taylor Rule, which incorporates future projections and smooths out short-term movements, recommends a higher interest rate target, in the range of 4.0 to 4.25 percent. The higher recommendation is due to forecasters anticipating an uptick in inflation in the coming quarter.

NGDP Targeting Rules

In a healthy economic environment, the total amount of money spent by consumers, businesses, and the government should grow at a steady and predictable pace. Total spending is commonly captured through nominal gross domestic product (NGDP). NGDP targeting rules imply that the Fed should lower interest rates to stimulate spending when NGDP is below target, or raise rates to slow down spending when NGDP is above target. A rule that targets a level of overall spending –  such as $30 trillion, the current size of spending in the US economy – is called an NGDP level target. A rule that targets a growth rate – like four percent a year, the typical growth of the US economy – is called an NGDP growth rate target. 

An NGDP level target supports the expected rate cut, prescribing a target of 3.65 percent. An NGDP growth rate rule prescribes a slightly higher recommendation of 4.1 percent. The higher recommendation is due to relatively strong NGDP growth in the most recently available second quarter data. The NGDP level rule, on the other hand, takes into account previous quarters of weaker growth – such as the first quarter of 2025 – which suggest that lower rates are needed.

Taking the rules together, they support either a steady stance or a modest cut. The important point is that the rules themselves reflect the tensions within the data, which is why both camps within the Fed can point to them with some justification.

Why This Matters

The current disagreement among policymakers might look worrisome at first glance, but it should actually be read as a sign that officials are taking both sides of the Fed’s mandate seriously. It means that no single narrative — whether focused on inflation, recession risks, or labor market strength — is dominating the discussion. The groupthink that was complicit in previous policy errors — like responding too slowly to the post-pandemic inflation surge – is reassuringly absent.

It is also a reminder of the value of rule-based policy. The past several years showed how trouble can arise when policy deviates too far from rule-based benchmarks. Today, the gap between the Fed’s actions and the major monetary rules has narrowed considerably.

Looking Ahead

A rate cut by the Fed this week is defensible. But the broader story is the division within the committee itself. A split Fed is not a dysfunctional Fed; it reflects an economy that is delivering mixed signals and policymakers who are responding to those signals rather than forcing a narrative onto them.

For 2026, the guiding principle should be straightforward: further easing requires evidence. Growth, unemployment, and inflation should determine the path forward.

A steadier, more rule-guided Fed is exactly what the economy needs, especially at a moment when clarity is in short supply.

George Washington Plunkitt was born into poverty in 1842 but rose through the ranks of the Democratic Party machine of New York, the famed ‘Tammany Hall,’ to become a state representative and a state senator. He also became quite wealthy along the way.

Plunkitt always defended his machine and its methods — and the money they made him. Plunkitt would gladly defend the practices of Tammany, rebutting charges of corruption with the standard reply that ‘nobody thinks of drawin’ the distinction between honest graft and dishonest graft. There’s all the difference in the world between the two.’

Plunkitt’s brazenness lives on in the modern-day machines of the left, found in the deep-blue jurisdictions of the country. With the focus on the bilking of Minnesota taxpayers by the Somali community of the Twin Cities (many citizens, many not), voters across the country are still in shock as the story has unfolded since 2022. The lights shone on the Gopher State should get much brighter now, and after that, I have a follow-up that will make the swamp of the Twin Cities seem like a puddle.

The Minnesota story has been hiding in plain sight, with superb reporters from one of the original blogs of more than 20 years ago, Powerline, poring over the scandal for years.

Powerline’s founders John Hinderaker and Scott Johnson, and more recently their colleague Bill Glahn, have continued to dig and report, dig and report, dig and report on the ‘Somali connection.’

Minnesota senator: Walz ignored fraud warnings as B stolen, funds may have reached al-Shabaab

In recent weeks, the story caught fire with the help of reporting by Ryan Thorpe and Christopher Rufo of the Manhattan Institute’s City Journal and by Fox News. That ‘Minnesota is drowning in fraud,’ as Thorpe and Rufo put it, has now become a national story. Pray that it is the first of many.

‘There’s an honest graft, and I’m an example of how it works,’ Boss Plunkitt would say. ‘I might sum up the whole thing by sayin’: I seen my opportunities and I took ‘em.’

Turns out the defendants, the indicted and the convicted in the Gopher State saw their opportunities as well, and they put Tammany to shame when it came to scale and speed.

The conmen of Minnesota bilked the state out of vast piles of cash through a variety of plays, the most infamous of which is, for the moment, ‘Feeding Our Future.’ It took truly extraordinary efforts by Minnesota Gov. Tim Walz and the state’s attorney general, Keith Ellison, to turn their eyes the other way to allow that scam and soon others to flourish. The possessed girl in ‘The Exorcist’ had nothing on Walz and Ellison when it came to turning their heads.

Gov. Walz under fire: Minnesota fraud scandal fuels calls for entitlement crackdown

We have former Attorney General Eric Holder and former White House Counsel Dana Remus to thank for elevating the massive fraud ring run primarily out of the Somali American and Somali community in the Twin Cities to the nation’s attention.

Why? Because that pair made Walz much more than an obscure governor of a deep-blue state. That duo was primarily responsible for ‘vetting’ the 2024 Democratic nominee for vice president as one of Democratic presidential candidate Kamala Harris’ potential running mates. The dynamic duo of Holder and Remus either wholly missed the massive cons run on Walz’s watch or judged them not significant enough to derail his candidacy.

During ‘Brat Summer,’ the legacy media abandoned its past practices and joined in the effort to push the worst pair of candidates to the finish since Alf Landon and Frank Knox got blown out by FDR in the 1936 referendum on Roosevelt’s New Deal.

Holder blessed Walz, and Holder’s fans in the Manhattan–Beltway corridor followed suit. Media elites blessed Holder’s judgment in turn.

Big mistake.

Now Walz is part of the national Democratic Party’s brand and refuses to go away, choosing to concentrate his efforts on running for a third term as governor next year — and apparently hoping he might be the party’s standard-bearer in 2028. Instead, ‘Feeding Our Future’ broke out of the Minnesota news ghetto and onto the national stage.

‘Run Tim Run’ should be the GOP’s chant, alongside ‘Run Gavin Run,’ because just like Walz, California Gov. Gavin Newsom has some industrial-level explaining to do.

No, I’m not referring to the California governor’s French Laundry debacle. And no, not the devastating fires that tore through L.A. in January. Not even his indicted former chief of staff. No, the exact parallel to Walz’s woe is the Newsom administration’s handling of COVID-era relief for the unemployed — a statewide con run by political cons.

Trump is right to

The Pandemic Unemployment Assistance program (PUA), like the Lost Wages Assistance plan, was devised and funded by Congress to keep alive Americans left unemployed or with their businesses shuttered by COVID lockdowns. Like standard unemployment programs, these COVID-era programs were primarily run through state unemployment insurance offices and other state agencies.

The COVID lockdowns were unprecedented, and the public health ‘authorities’ responsible for advising and administering them should never be taken seriously again.

Many of those bureaucrats, drunk on new authority, stepped forward when elected officials sought guidance on what to do about the mysterious and deadly disease imported from China. (Their dismissal of the lab-leak theory speaks to their actual, as opposed to presumed, expertise.)

When lockdowns became the solution du jour, Congress rightly understood that they were shutting down the livelihoods of tens of millions of Americans and flooded the country with life-saving money — three times.

Small Business Administration continues probe into Minnesota fraud allegations

It was not just the Minnesota Somali community that had ‘seen their opportunities and took ‘em.’ So, too, did the cons of California: the real, honest-to-goodness cons of the California penal system — inmates for whom available time to scheme and scam is abundant.

Ask your favorite AI engine, ‘How much fraud was perpetrated against the California Employment Development Department during COVID?’ The answers will vary, but the floor on the cost of the fraud is $20 billion. The ceiling is more than $30 billion.

The Golden State’s EDD is ‘run’ by a director, and Gov. Newsom, who took office in 2018, has appointed two: Rita Saenz and Nancy Farias. COVID arrived on Newsom’s watch, and he and his appointees should own the fraud that followed. They make the Walz–Ellison team look like pikers when it comes to ignoring fraud.

In his first term, President Trump stood up Operation Warp Speed, and Congress rightly decided to (1) spend federal dollars to lessen the lockdown pain and (2) leave the payment of most public benefits to state agencies, while COVID business loans were handled by private-sector banks as the Federal Reserve and Treasury Department innovated in a variety of ways to prevent an economic crash.

The years following the mishap at the Wuhan lab demonstrated the vast incompetence of the American administrative state but also the necessity of a federal government to pick up the tab when ‘scientists’ lose their collective minds and, for example, counsel the closure of schools.

Dr. Oz demands action from Minnesota officials amid Medicaid fraud scandal

The official timeline has COVID appearing in Wuhan in December 2019 and reaching U.S. shores a month later. We may never know when the first cases were diagnosed by the Chinese Communist Party, and we are not in a position to investigate the horrific fraud and consequent disaster for which General Secretary Xi Jinping is responsible.

But President Trump could order a six-month deep dive into the financial fraud that followed in the U.S., not just in Minnesota and California — though those are the ‘patient zeroes’ for never allowing a crisis to pass without enriching the state’s worst actors.

Could President Trump stand up a time-limited panel to investigate fraud perpetrated on state agencies during COVID? Yes. Might that panel torch a few GOP reputations along the way? Inevitably.

But the interest in the Minnesota Somali shakedown should be a demand signal for accountability across the country.

President Trump often acts in the mold of Teddy Roosevelt, who, like 45–47, was never afraid of a headline — provided he provoked it.

Now is the time for the president to ask a handful of the smartest, most respected people in the country to sort through the wreckage of the COVID era’s many state governments’ responsibilities and ‘initiatives’ and report in rapid fashion — and in clear English — the scale of fraud perpetrated upon state agencies.

Make your search-and-publicize team smart and fast. Putting Johnson and Hinderaker as co-chairs of a strike team devoted to compiling the facts as we know them today would ensure accuracy and fine writing.

And give them a deadline: Aug. 31, 2026. Voters deserve to know how their state governments worked during COVID — or didn’t — before they vote again.


This post appeared first on FOX NEWS


‘The U.S. struggle with China is the single greatest competition the United States has ever faced,’ defense analyst Seth Jones writes in his new book The American Edge.

And in an interview with Fox News Digital, Jones warned that if war broke out over Taiwan, the United States could burn through key long-range missiles ‘after roughly a week or so of conflict’ — a shortfall he says exposes how far behind the U.S. industrial base remains as Beijing moves onto what he calls a wartime footing.

Jones is a former Pentagon official and president of the Defense and Security Department at the Center for Strategic and International Studies (CSIS). He argues the United States isn’t dealing with a superpower like the Soviet Union, whose system was brittle and economically isolated. China’s economy, he noted, is roughly the size of the U.S. and deeply tied into global production. That economic weight is fueling a military buildup across every major domain, from fifth- and sixth-generation aircraft to an enormous shipbuilding sector he describes as ‘upwards of 230 times the size of the United States.’ The effect, he said, is unmistakable. ‘The gap is shrinking.’

In ‘The American Edge,’ Jones lays out how great powers historically win long wars through production, not just innovation — and that’s where he believes the U.S. has the most to worry about. China’s missile forces now field a wide range of weapons designed to hold U.S. ships and aircraft at risk far from Taiwan. That makes stockpiles and throughput central to any American strategy in the Indo-Pacific.

‘When you look at the numbers right now of those long-range munitions, we still right now would run out after roughly a week or so of conflict over Taiwan,’ he said. ‘That’s just not enough to sustain a protracted war.’

Jones stressed that China’s strengths often overshadow a major vulnerability: its limited ability to hunt submarines. He said Beijing ‘still can’t see that well undersea,’ a gap the U.S. could exploit in any fight over Taiwan. If China tried to ferry troops across the Strait or impose a blockade, American attack submarines — along with a larger fleet of unmanned underwater vehicles — would pose a serious threat. He called the undersea environment one of the few places where the U.S. retains a decisive advantage, and one where production should accelerate quickly.

China has other problems as well. Jones pointed to corruption inside the PLA, inefficiency across its state-owned defense firms, ongoing struggles with joint operations and command-and-control and the fact the Chinese military hasn’t fought a war since the late 1970s. Its ability to project power beyond the first island chain also remains limited. But none of those challenges, he said, change the broader trajectory: China is building weapons in mass and at high speed — and the U.S. is still trying to catch up.

That theme sits at the center of his book. Jones describes a U.S. defense industrial base constrained by long acquisition timelines, aging shipyards, complicated contracting rules and production lines that aren’t built for a modern great-power conflict. In his view, the United States must rediscover the industrial urgency that once allowed it to surge output in wartime.

That responsibility is now falling to the Trump administration, which has pushed the Pentagon and the services to move faster on drones, munitions and new maritime capabilities. Over the past year, the Army, Air Force and Navy have launched new rapid-acquisition offices and programs aimed at fielding systems more quickly and helping smaller companies survive the long, expensive path to production. Senior defense officials have started using the phrase ‘wartime footing’ to describe the moment — language Jones said is overdue.

‘That is exactly the right wording,’ he said. ‘The Chinese and the Russian industrial bases right now … are both on a wartime footing.’

He said identifying a set of priority munitions for multiyear procurement is a meaningful step, and early moves to streamline contracting are encouraging. But he cautioned that the scale of the problem is much larger than the reforms announced so far. ‘The Pentagon writ large is a massive bureaucracy,’ he said. ‘It’s going to take a lot to break that bureaucracy. There’s been some progress, but it’s trench warfare right now.’

Jones said parts of the new National Defense Authorization Act move the needle in the right direction — especially support for expanding shipbuilding and efforts to strengthen the defense workforce. He also pointed to growing interest in leveraging allied shipyards in Japan and South Korea to relieve America’s overburdened maritime industry. But he argued that Washington is still not investing at a level that matches the threat.

‘As a percentage of gross domestic product, [defense spending] is about three percent,’ he said. ‘It’s lower than at any time during the Cold War. I think we need to start getting closer to those numbers and increase the amount of that budget that goes into procurement and acquisition.’

Artificial intelligence is another area Jones believes will reshape the battlefield faster than Washington anticipates. He noted that missile and drone threats now move at a volume and speed no human operator can manually track. ‘You can’t do things like air defense now without an increasing role of artificial intelligence,’ he said. The same applies to intelligence and surveillance, where AI-driven systems are already sorting vast amounts of satellite and sensor data.

But Jones said the United States will fall behind unless the Pentagon brings commercial AI leaders — companies like Nvidia and Google — more directly into national security programs. He argued that the United States needs the opposite of the consolidation that collapsed the defense industry in the 1990s. ‘We’ve got to get to a first breakfast,’ he said, meaning more tech firms competing in the defense space, not fewer.

Despite his warnings, Jones said the United States still has time to rebuild its industrial advantage. But it must act quickly. The Trump administration is talking about a wartime footing. China, he warned, is already living it.


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Senate Republicans appear to be closing in on a plan to counter Senate Democrats’ proposal to extend expiring Obamacare subsidies as a vote on credits at the end of the week draws closer.

Senate Health, Education, Labor and Pensions chair Bill Cassidy, R-La., and Senate Finance Committee Chair Mike Crapo, R-Idaho, unveiled their proposal to tackle the Obamacare issue that would abandon the subsidies for Healthcare Savings Accounts (HSAs).

The lawmakers have been leading Senate Republicans’ planning for a counter-proposal to Senate Minority Leader Chuck Schumer, D-N.Y., and Senate Democrats’ legislation, which would extend the Biden-era subsidies for three years.

Cassidy and Crapo pitched the legislation as ‘an alternative to Democrats’ temporary COVID bonuses, which send billions of tax dollars to giant insurance companies without lowering insurance premiums.’

The long-awaited proposal would funnel the subsidy money directly to HSAs rather than to insurance companies, an idea that has the backing of President Donald Trump and is largely popular among Senate Republicans.

‘Instead of 100% of this money going to insurance companies, let’s give it to patients. By giving them an account that they control, we give them the power,’ Cassidy said in a statement. ‘We make health care affordable again.’

Crapo contended that the legislation would build off of Trump’s marquee legislative package, the ‘big beautiful bill,’ from earlier this year and would ‘help Americans manage the rising cost of health care without driving costs even higher.’

‘Giving billions of taxpayer dollars to insurers is not working to reduce health insurance premiums for patients,’ he said in a statement.

Whether the bill gets a vote in the upper chamber this week remains in the air, given the growing number of Obamacare subsidy plans floated by Senate Republicans. But Senate Majority Leader John Thune, R-S.D., signaled that he thought their plan could work.

‘It represents an approach that actually does something on affordability and lowers costs,’ Thune said.

‘But there are other ideas out there, as you know, but I think if there is going to be some meeting of minds on this, it is going to require that Democrats sort of come off a position they know is an untenable one, and sit down in a serious way,’ he continued.

Cassidy and Crapo’s plan would seed HSAs with $1,000 for people ages 18 to 49 and $1,500 for those 50 to 65 for people earning up to 700% of the poverty level. In order to get the pre-funded HSA, people would have to buy a bronze or catastrophic plan on an Obamacare exchange.

The legislation also ticks off several demands from Senate Republicans in their back and forth with Senate Democrats over the subsidies that are unlikely to gain any favor from Schumer and his caucus.

Shortly after the legislation was unveiled, Schumer charged in a post on X that ‘Republicans are nowhere on healthcare, and the clock is ticking.’

Included in Cassidy and Crapo’s bill are provisions reducing federal Medicaid funding to states that cover undocumented immigrants, Requirements that states verify citizenship or eligible immigration status before someone can get Medicaid, a ban on federal Medicaid funding for gender transition services and nixing those services from ‘essential health benefits’ for ACA exchange plans, and inclusion Hyde Amendment provisions to prevent taxpayer dollars from funding abortions through the new HSAs.

Senate Republicans are expected to discuss the several options on the table, including newly-released plans from Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, and Sen. Roger Marshall, R-Kan., respectively, during their closed-door conference meeting Tuesday afternoon.

When asked if there could be a compromise solution found among the proposals, Cassidy said, ‘That’s going to be the will of the conference, if you will.’


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Republican Rep. Marjorie Taylor Greene of Georgia announced Tuesday that she intends to vote against the proposed fiscal year 2026 National Defense Authorization Act, saying the legislation spends too much taxpayer money on foreign priorities. 

Greene said in a post on X that the NDAA is ‘filled with American’s hard earned tax dollars used to fund foreign aid and foreign country’s wars.’

Greene pointed to the rising national debt, which, according to fiscaldata.treasury.gov, is more than $38.39 trillion.

‘These American People are $38 Trillion in debt, suffering from an affordability crisis, on the verge of a healthcare crisis, and credit card debt is at an all time high. Funding foreign aid and foreign wars is America Last and is beyond excuse anymore. I would love to fund our military but refuse to support foreign aid and foreign militaries and foreign wars. I am here and will be voting NO,’ Greene declared in her post.

But House Speaker Mike Johnson has praised the proposed NDAA.

Marjorie Taylor Greene tells

‘This year’s National Defense Authorization Act helps advance President Trump and Republicans’ Peace Through Strength Agenda by codifying 15 of President Trump’s executive orders, ending woke ideology at the Pentagon, securing the border, revitalizing the defense industrial base, and restoring the warrior ethos,’ Johnson said in part of a lengthy statement.

Marjorie Taylor Greene spars with

Greene plans to leave office early next month, in the middle of her two-year term.


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After 2025’s volatile end, 2026 is poised to be a watershed moment for the cryptocurrency sector, marking a transition from a speculative asset class to essential global financial infrastructure.

Further regulatory clarity, artificial intelligence (AI) integration, real-world asset (RWA) tokenization and sustained institutional inflows could propel DeFi and crypto markets in 2026. According to experts, this is no longer a conversation about crypto versus TradFi; it’s about a hybrid financial system where digital assets are simply better tools.

Crypto market maturity and resilience

According to Elkaleh, Bitcoin’s resilience during its recent pullback, which brought a 37 percent drawdown from its October all-time high, was telling. While such severity was surprising, he observed that long-term holders and institutions continued to accumulate rather than unwind exposure, which he sees as an indicator of health.

“Q4 was defined by a major leverage reset, with BTC’s sharp pullback forcing a broader reassessment of risk,” he said.

At the time of this writing, analysts were split on where Bitcoin could go next. A further crash risk lingers if the US Federal Reserve delays interest rate cuts; however, a post-purge rally to US$135,000 to US$150,000 is in sight mid-year if institutions return, exchange-traded fund (ETF) flows flip positive and futures premiums stabilize above 5 percent.

As Bitcoin dropped, Elkaleh observed other segments of the market tied to practical use cases and diversification strategies — such as privacy assets, decentralized AI and stablecoin ecosystems — weather the storm.

“The market (has shown) growing maturity: capital and developer attention shifted toward utility-driven sectors such as tokenization, stablecoins and real-world integrations.”

Tokenization: The on-chain first institutional default

Mersch sees tokenization accelerating in 2026, eventually becoming the default for new institutional financial products.

He sees the foundation of this shift being built, with tokenized treasuries and money-market funds serving as a core yield sleeve for institutional investors who demand liquidity, standardized reporting and programmable settlement.

“If current growth holds, tokenized assets could be a multi-trillion dollar market by 2030, with government bonds and cash-like instruments as the anchor,” he said. “Over the next five years, the key shift is likely that new institutional products are designed as on-chain first, and only secondarily wrapped in legacy wrappers.”

He anticipates that stablecoins will be solidified as the liquidity backbone for a growing tokenized market, acting as the new cash layer. The most likely end state, according to Mersch, will be a hybrid digital cash stack, where bank-issued stablecoins, private stablecoins and central bank digital currenciesco-exist and interoperate.

Mersch predicts that tokenized real estate and private credit will now start to see expansion.

For real estate, tokenization converts a traditionally illiquid market into tradable, divisible assets, lowering the barrier to entry for global investors and providing recurring revenue streams.

Rupena, whose company, Milo, pioneered the crypto-backed mortgage, asserts that lenders will be expected to recognize digital assets as a core part of a client’s real balance sheet, just like cash or securities.

Elkaleh also expects to see strong expansion in RWA tokenization in 2026, alongside stablecoin-based payouts and small-business payment rails. “The most accelerated growth will occur in emerging markets, where mobile-first users turn to crypto as a practical financial alternative,” he wrote in an email.

“The rise of RWA markets, L2 scalability and more accessible DeFi will allow onchain credit and savings to scale meaningfully. Combined with steady institutional inflows, these economies will become the strongest demand engines of 2026, driving both user growth and real economic activity onchain.”

DeFi: An institutional derivatives and credit layer

The final pillar of the 2026 crypto outlook is the maturation of DeFi. Mersch asserted that DeFi is poised to emerge as a compliance-ready core platform for credit and risk management in 2026.

Real-world structural resilience supports Mersch’s forecast.

Rupena noted that market ups and downs are expected in the digital asset ecosystem, and that conservative LTVs, real-time monitoring and clear margining frameworks are designed to cope with volatility.

“Lower forced liquidation activity, even during big market moves, is a very healthy signal,” he explained, adding that customers are purposely keeping collateral cushions so they can stay calm during market swings.

This focus on prudence and durability validates the market’s readiness for institutional-grade credit and risk products.

“If successful, this creates a liquid, 24/7 derivatives layer that sits on top of both tokenized and traditional markets,” Mersch said. “By 2026 and beyond, the most interesting innovation may not be crypto versus TradFi, but portfolio and product designs that blend tokenized assets, stablecoin liquidity and DeFi-based synthetic exposure into a single stack.”

This institutional leap is fundamentally enabled by regulatory clarity.

“You can already see this through partnerships like Coinbase (NASDAQ:COIN) with Circle Internet Group (NYSE:CRCL) and Morpho (TSE:3653), where yield is embedded at the platform level without requiring users to interact directly with on-chain protocols. Regulation will accelerate that model,’ he added.

Elkaleh noted that clearer rules will allow users to adopt on-chain tools for cross-border payments, tokenized savings and AI-driven bill pay with the same confidence they have in regulated fintech apps. He expects the most transformational impact will come from next-generation L2 scalability paired with AI-agent execution.

“These shifts will bring down transaction costs, compress settlement times, and enable autonomous payments, subscriptions and cross-chain operations,” the expert explained.

“We also expect prediction-market aggregation to emerge as a breakout consumer interface and RWA perpetuals to bring macro assets, including commodities, credit and inflation onchain through synthetic markets. These developments collectively move crypto into a more comprehensive, high-velocity financial system.”

Upcoming crypto market catalysts

The pivot to a hybrid financial system will be driven by several concurrent catalysts.

The US Market Structure Bill is targeted for a Senate floor vote in early 2026, aiming to create the first federal framework for digital assets. North of the border, Canada’s Stablecoin Act, which provides C$10 million for Bank of Canada oversight starting in 2026, signals official endorsement of the digital cash layer.

Globally, the Basel Committee on Banking Supervision is set to implement new capital standards for banks’ crypto exposures, crucial for encouraging institutional momentum, by January 1, 2026.

The technological engine supporting this adoption is fueled by scalability and intelligence.

On the blockchain side, Ethereum’s aggressive roadmap, including the Glamsterdam upgrade targeted for 2026, continues to refine Layer-2 (L2) systems. This focus on L2 efficiency, combined with the integration of AI agent execution, is key for supporting the millions of transactions needed for a comprehensive, high-velocity financial system.

Investor takeaway

In 2026, the crypto market is set to deliver meaningful gains and stable, sustained growth as this new, highly efficient, and globally interoperable financial system moves from the laboratory into production scale.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Here’s a quick recap of the crypto landscape for Monday (December 8) as of 9:00 p.m. UTC.

Get the latest insights on Bitcoin, Ether and altcoins, along with a round-up of key cryptocurrency market news.

Bitcoin and Ether price update

Bitcoin (BTC) was priced at US$90,672.01, down by 0.9 percent over 24 hours.

Bitcoin price performance, December 8, 2025.

Bitcoin price performance, December 8, 2025.

Chart via TradingView.

Cryptocurrencies traded choppily, but were ultimately directionless over the weekend.

Bitcoin briefly slipped toward the high US$87,000s on Sunday (December 7) ahead of this week’s US Federal Reserve meeting, with both short and long positions liquidated.

Markets are pricing in a 25 basis point interest rate cut from the Fed on Wednesday (December 10), but labor weakness and sticky inflation will make Chair Jerome Powell’s tone pivotal.

Linh Tran, senior market analyst at XS.com, believes Bitcoin “will likely continue oscillating within the US$84,000 to US$100,000 range until the Fed delivers a clear message,” adding that a 0.25 percentage point cut and dovish signals “would be favorable for risk assets, particularly Bitcoin,” while a hawkish stance risks downward pressure.

On Monday, Bitcoin briefly traded at around US$92,000, but failed to retest US$92,000 to US$93,500 resistance, dropping below US$90,000 as the US market opened.

Crypto analyst Daan Crypto Trades said bulls must defend the 0.382 Fibonacci retracement zone, which serves as a key area of support and resistance during market cycles. Failure to do so could result in a fall to April lows. Fellow analyst van de Poppe is eyeing US$86,000 as key support before potential lows retest.

Liquidity stayed thin, and derivatives positioning showed waning momentum rather than clear trend conviction, setting up a cautious, data‑dependent start to the new week.

Last week, US spot Bitcoin exchange-traded funds (ETFs) experienced net outflows of US$87.77 million, while spot Ether ETFs recorded US$65.59 million in outflows.

Cycle data mirroring 2022’s market suggests Bitcoin’s long-term bottom is in or imminent, according to investment manager Timothy Peterson. Derivatives data analyzed by CryptoQuant indicates trader apathy, signaled by low OI and leverage, paving the way for a potential rally.

Ether (ETH) is currently priced at US$3,129.54, down 0.4 percent over 24 hours.

Altcoin price update

  • XRP (XRP) was priced at US$2.09, a decrease of 0.2 percent over 24 hours.
  • Solana (SOL) was trading at US$134.23, down by 1.3 percent over 24 hours.

Crypto derivatives and market indicators

Bitcoin futures open interest rose 0.53 percent to US$58.18 billion in the last four hours of trading, alongside US$4.88 million in liquidations that hit mostly long positions, while Ether open interest climbed 0.49 percent to US$37.84 billion, with US$8.76 million liquidated.

Bitcoin’s relative strength index sits neutral at 51.67 with a mildly negative funding rate of -0.001 percent, signaling balanced momentum and slight short bias, whereas Ether’s positive 0.006 percent funding rate points to lingering long interest despite the downside pressure.

These metrics reflect cautious positioning amid recent Bitcoin consolidation, with rising open interest indicating fresh capital entering despite liquidation flushes that targeted longs more aggressively. The neutral-to-bearish Bitcoin funding and RSI suggest limited upside conviction short-term, potentially capping rallies until macro catalysts provide direction, while Ether’s funding tilt hints at relative resilience in alt positioning.

Today’s crypto news to know

StableChain launches mainnet

StableChain has launched its mainnet, introducing USDT as the gas fee token alongside a new dedicated governance token for network participants.

Tether’s USDT regulatory win

Tether’s USDT stablecoin received key regulatory status in Abu Dhabi, enhancing its legitimacy for institutional use.

BlackRock files for staked Ether ETF

BlackRock filed to list a staked Ether ETF, signaling growing institutional appetite for Ether-based yield products.

SEC closes Ondo probe

The US Securities and Exchange Commission (SEC) ended its investigation into tokenized equity platform Ondo Finance, clearing a major regulatory hurdle.

Strategy boosts BTC holdings

Strategy’s (NASDAQ:MSTR) Bitcoin treasury has surpassed 660,000 BTC after a US$962 million purchase, underscoring aggressive accumulation by major players.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

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A new wave of public polling and media coverage suggests that the Trump administration’s claim that “there is no affordability crisis” is increasingly being rejected by American households. 

Recent reporting shows rising public skepticism toward assertions that prices are stabilizing or falling. Donald Trump has repeatedly dismissed cost-of-living concerns as a “Democrat hoax” or a “con job,” yet consumer frustration over housing, energy, food, health care, and insurance remains widespread. Even as the administration insists that purchasing power has improved, most voters report that everyday necessities remain far more expensive than just a few years ago, undercutting the official narrative and widening the credibility gap between political messaging and lived reality. Prices have risen, broadly, since the 2024 election.

CPI Food, Energy, Core, and Electricity, November 2024 – September 2025

(Source: Bloomberg Finance, LP)

Prices are of course much higher than they were prior to the pandemic, and although the annual rate of inflation may have slowed, cumulative price levels are dramatically above pre-2020 norms. Housing, insurance, utilities, groceries, and many categories of durable goods remain far out of line with historical purchasing-power trends. The relevant measure for households is not the year-over-year inflation rate, but whether wages have kept pace with total price increases. Real affordability depends on the relationship between prices and incomes, not simply the direction of inflation. Even official wage and income measures continue to lag cumulative inflation since early 2021, which means that the broad affordability problem has not meaningfully eased.

Economic lags matter — a core principle of sound economics, and especially the free market tradition. Policy interventions, whether fiscal or monetary, operate with considerable delays. The enormous fiscal expansion of 2020 to 2021, combined with extraordinary Federal Reserve accommodation and unprecedented money supply growth, produced predictable consequences with the customary lag. Prices have been rising for years, and the cumulative effect is still visible today. Supply shocks, monetary excess, and regulatory distortions do not disappear overnight.

Indeed, the Federal Reserve’s tightening campaign has so far merely slowed additional damage; it has not undone the prior shocks. Historically, disinflation produces a difficult adjustment process: credit tightens, asset prices reprice, real household incomes lag, and consumption patterns shift. This stage is inherently unpopular, but unavoidable. Instead of acknowledging that households are in this difficult transition, the administration has attempted to leap over the adjustment period with rhetoric, insisting that prices are already headed down and affordability restored. Yet Americans still confront elevated grocery prices, historically high mortgage rates, persistent insurance premium increases, and costly medical bills. When government asserts improvement while households experience strain, voters believe their wallets rather than the White House.

In recent months, Trump has repeatedly asserted that inflation has already been brought under control since he returned to office. In October 2025 he said that the Federal Reserve had cut rates and declared that “inflation has been defeated.” In a November 10 White House statement titled “NEW DATA: Lower Prices, Bigger Paychecks,” the administration claimed that Trump’s economic agenda was “delivering real results,” including tamed inflation, falling everyday prices, and rising wages. In an interview aired on November 11, Trump said that “costs are way down across the board,” emphasizing lower gasoline and interest rates, and at a McDonald’s–themed public appearance he again claimed that gas prices were “way down” and that prices generally were “coming down” under his administration. More broadly, recent White House messaging and Trump’s campaign-style remarks have described his first year back in office as producing “lower prices” and improved affordability for American families.

Yet the underlying data tell a very different story — one that American consumers immediately recognize. Prices continue to rise across most major categories and remain substantially above the Federal Reserve’s inflation target. Wages have increased more slowly than prices over the past several years, meaning real purchasing power remains depressed relative to pre-pandemic conditions. A few categories — notably gasoline in 2025 — have indeed declined. But most have not. The pattern bears a striking resemblance to Joe Biden’s widely discredited claim that inflation was “over nine percent” when he took office: a political narrative at odds with statistical reality.

Between January 2017 and December 2020, the CPI-U rose about 7.3 percent, food about 8.7 percent, and the All Items Less Food and Energy index about 7.7 percent. Energy was essentially flat. Wages rose at roughly similar rates. Affordability pressures were building, but the alignment of wages and prices meant that a sustained affordability crisis had not yet emerged.

The picture changes dramatically starting in early 2021. From January 2021 through December 2024, the CPI-U rose nearly 21 percent, the Food index climbed more than 23 percent, and the All Items Less Food and Energy index gained roughly 19 percent. Energy prices rose more than 30 percent. Meanwhile, wage growth was substantially weaker; generally in the mid- to high-teens over the period. Depending on the specific wage measure, incomes were flat or negative to price increases through most of 2021 to 2023 and only slightly positive in late 2024. The divergence marks the beginning of the affordability crisis: prices outran wages, and they have continued doing so.

Early 2025 data confirm a continuing affordability squeeze. From January to September 2025, the All Items CPI rose about 2.2 percent, food about 2.1 percent, energy nearly 4 percent, and core indices about 2.2 percent. Nominal wages rose only modestly, and real gains were minimal. The affordability problem did not end with the turn of the calendar or the election; it persists as long as cumulative price increases outstrip wage gains. Moderating inflation only slows the rate at which affordability erodes; it does not undo the erosion already suffered.

CPI All Items, Food, Energy, and Core, 2021 – present

(Source: Bloomberg Finance, LP)

Electricity costs have risen relentlessly, climbing from an index level of about 215 in early 2021 to roughly 277 by the end of 2024, and advancing further into the mid-290s in 2025 — an almost uninterrupted increase that underscores how even essential utilities remain substantially more expensive than before the affordability crisis began.

The same pattern holds in individual food categories. Sirloin steak, coffee, beef cuts, and many packaged goods are all measurably higher now than in January 2025. A few categories have fallen from recent peaks, but not enough to reverse the cumulative increases since 2021. In fact, several items rose more in the first nine months of 2025 than during the entire 2021 to 2024 period. This suggests not only that elevated prices remain embedded in household budgets, but that some categories continue to accelerate even after “high inflation” has supposedly ended. Put plainly, the affordability crisis that began in 2021 has not faded; it has evolved into a stubborn, category-specific price pressure affecting everyday goods.

Tariffs are a component of the affordability problem: rather than removing the cost-raising policies of prior years, the administration has expanded them, even though tariffs are taxes that raise input prices, distort supply chains, and weaken competitive discipline — all of which generate costs ultimately borne by producers and consumers alike. 

Insisting there is no affordability crisis while simultaneously increasing import costs is analytically incoherent, especially when many of the underlying pressures — monetary excesses, pandemic distortions, and longstanding regulatory barriers — predate Trump’s return to office. Instead of denying these strains, the administration could acknowledge them and credibly explain their origins while advancing market-oriented solutions: expanding competition, removing regulatory bottlenecks, and eliminating tariffs, which would quickly relieve price pressures and reduce costs economy-wide.

The irony is that the administration could, but for inexplicable intransigence, actually win this issue. By recognizing the affordability crisis and offering market-oriented remedies, it could restore credibility and articulate a coherent economic vision. Instead, by taking the precise tacticthat its predecessor didand attempting to evadeand mislead citizens, it forfeits the strongest argument available: yes, there is an ongoing affordability crisis; it did not start under the current administration, but it continues; it partially owes to policy lags, and partially to interference with trade (as the administration has already conceded); and truly free-market reforms are the only lasting way out. By denying what Americans plainly experience, the administration turns a solvable economic challenge into a major political liability while leaving households to absorb costs that sound policy could meaningfully reduce.

Clem Chambers, CEO of aNewFN.com, shares his outlook for silver in 2026.

In his view, the white metal could rise as high as US$150 to US$160 per ounce.

Chambers also discusses his other areas of focus right now, including gold, as well as the defense industry and tech stocks like Intel (NASDAQ:INTC).

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

(TheNewswire)

Prismo Metals Inc.

Vancouver, British Columbia, December 8, 2025 TheNewswire – Prismo Metals Inc. (‘ Prismo ‘ or the ‘ Company ‘) (CSE: PRIZ,OTC:PMOMF) (OTCQB: PMOMF) is pleased to announce that it has continued out of the jurisdiction of Canada under the Canada Business Corporations Act into the provincial jurisdiction of British Columbia under the Business Corporations Act (British Columbia) (the ‘ BCBCA ‘). Shareholders approved the continuance at the Company’s annual general and special meeting of shareholders held on October 2, 2025.

In connection with the continuance, the Company has replaced its articles and bylaws with new notice of articles and articles, respectively, under the BCBCA. The CUSIP / ISIN numbers for the Company’s common shares and the stock symbol for the Company’s common shares remain unchanged.

About Prismo Metals Inc.

Prismo (CSE: PRIZ,OTC:PMOMF) is mining exploration company focused on advancing its Silver King, Ripsey and Hot Breccia projects in Arizona and its Palos Verdes silver project in Mexico.

Please follow @ PrismoMetals on , , , Instagram , and

Prismo Metals Inc.

1100 – 1111 Melville St., Vancouver, British Columbia V6E 3V6

Phone: (416) 361-0737

Contact:

Alain Lambert, Chief Executive Officer alain.lambert@prismometals.com

Gordon Aldcorn, President gordon.aldcorn@prismometals.com

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Copyright (c) 2025 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

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