Fed-y to rumble... The Fed may end its stimulus early and hike interest rates by March to cool spiking prices. Refresher: Higher interest rates discourage borrowing/spending. Last week, the tech-y Nasdaq sank 5%, with Netflix down 11% and Twitter down 7%. Longer term, analysts say markets could slump 10 months after a rate hike. Plus, mortgage rates are at two-year highs, and inflation’s at a 39-year high. Relief is coming: Biden’s giving out $4.5B to help cover rising winter heating costs, while working to salvage his $1.7T social and climate spending bill.
Digi-Yuan vs. Dollar... Last week China launched a wallet app to expand use of its state-run digital currency (#DigiYuan) ahead of a national rollout. And WeChat owner Tencent, which has 1B+ users, said it’s joining ecomm giant JD.com in supporting the currency. China is positioning the digi-yuan for international use, starting with next month’s Beijing Olympics — and it’s pressuring companies like McDonald’s and Visa to accept it. As US and Chinese financial markets continue decoupling, digi-yuan could threaten the USD’s global dominance while the US debates its own digital dollar.