With the most recent US GDP figures (-0.9%) showing a second back-to-back negative reading, many are saying that the US has entered a recession. This comes after another recession indicator, an inversion of the US Treasury yield curve, began flashing several times starting in April. Most recently, interest on the 2-year note has been higher than that of the 10-year note for most of July. However, jobs and employment data in the US still remains strong – and it’s one of the main reasons cited by US officials like Fed Chair Jerome Powell and Treasury Secretary Janet Yellen on why the US is not in a recession. Whether there is an “official” recession is decided by the National Bureau of Economic Research, which uses a complicated system of metrics to measure the health of the American economy.
Another Crypto Company Files for Bankruptcy
Southeast Asia-focused cryptocurrency exchange Zipmex has filed for bankruptcy protection in Singapore – the latest in a series of dominoes falling in an ongoing crypto “winter”. Zipmex has said that it is trying to address $53 million of exposure to embattled crypto lenders Celsius and Babel Finance. Zipmex’s lawyers have submitted 5 moratoriums blocking legal action against the compay for 6 months.
Senate Passes $52 Billion CHIPS Act
The US Senate has passed a bipartisan bill to boost the US semiconductor industry to address the chip shortage, while increasing the competitiveness against China. Over $52 billion will go to domestic companies manufacturing and designing chips. There will also be tax credit given for investments in chip manufacturing. With its role in virtually every piece of existing technology like smartphones and even household appliances, semiconductors are viewed by many as “the new oil” – and most of the world’s advanced chips are produced in Taiwan. Money in the bill will also go towards science training in the US, and promoting non-Chinese equipment manufacturing.