release

Analysis: The U.S. will release the PCE index tonight, and the Federal Reserve's rate cut window may be closing

ChainCatcher News, the U.S. will announce the Federal Reserve's preferred inflation indicator tonight------the Personal Consumption Expenditures Price Index (PCE). The market expects that the PCE price index for April may only increase by 0.1% month-on-month, while the year-on-year growth rate is expected to drop from 2.3% to 2.2%, approaching pre-pandemic levels.On the core side, the month-on-month growth rate of the core PCE, which excludes the volatility of food and energy prices, is expected to be 0.1%, but the year-on-year growth rate will remain high at 2.6%. Currently, the importance of the PCE lies in the fact that the Federal Reserve prefers to use it to measure the underlying trends in inflation.Analysts point out that the inflation effects of the tariffs imposed by the Trump administration have just begun to permeate the U.S. economy. Most economists predict that even if Trump relaxes some tariffs, inflation may rebound to 3% in a few months. With the U.S. core PCE stuck in the 2.8%-2.6% range for six consecutive months, the Federal Reserve's window for rate cuts is closing.Although some Federal Reserve officials still hold a positive attitude towards rate cuts, the interest rate futures market shows that traders' predictions for the probability of a rate cut in September have plummeted from 68% a week ago to 47%. They also expect that the U.S. economy is at a crossroads of a new inflation cycle.

The Federal Reserve released the minutes of the May meeting: uncertainty in the economic outlook has further intensified, and the risks of rising unemployment and inflation have increased

According to CCTV News, on May 28 local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting held on May 6-7. The minutes indicate that the Federal Reserve agreed to maintain the target range for the federal funds rate at 4.25%-4.5%. Participants unanimously agreed that when considering the magnitude and timing of further adjustments to the federal funds rate target range, the committee would carefully assess subsequent data, the evolving outlook, and risk balance. The minutes state that in evaluating the appropriate monetary policy stance, the committee will continue to monitor the impact of future information on the economic outlook. If risks emerge that could hinder the committee's goals, they will be prepared to adjust the monetary policy stance as appropriate. Participants noted that their assessment would consider a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international situations.The committee's assessment indicated that uncertainty regarding the economic outlook has further intensified, with rising risks of increased unemployment and inflation. Participants pointed out that if inflation persists while economic growth and employment prospects weaken, the committee may face difficult trade-offs. The ultimate adjustment of government policies and their impact on the economy are highly uncertain. Against this backdrop, all participants agreed that maintaining the federal funds rate target range at 4.25%-4.5% is appropriate. In considering the monetary policy outlook, participants unanimously agreed that given the robust economic growth and labor market, the committee is fully capable of waiting for a clearer outlook on inflation and economic activity. It is appropriate to adopt a cautious approach until the net economic effects of a series of government policy adjustments become clearer.Additionally, according to Jinshi News, the Federal Reserve minutes noted that the benchmark policy path implied by option prices (representing the mainstream market expectations) slightly shifted downward during this period, suggesting a potential rate cut of 1 to 2 times (25 basis points each) by the end of the year.

Cetus released a report on the theft incident, will advance the LP compensation plan and strengthen security audits

ChainCatcher message, Cetus officially released a report on the theft incident stating that on May 22, Cetus encountered a sophisticated smart contract attack targeting the CLMM liquidity pool. Cetus took immediate measures to mitigate the impact.The attacker exploited an undiscovered vulnerability in an open-source library, lowering the pool price to build positions in the high-price area, and utilized an overflow check flaw to inject inflated liquidity with very few tokens. Subsequently, they repeatedly executed liquidity removal operations to extract assets from the pool, continuously exploiting unverified calculation functions to carry out the attack, ultimately successfully stealing funds.To jointly maintain the maximum interests of the entire ecosystem, with the support of most Sui validator nodes, Cetus urgently froze two Sui wallet addresses of the attacker, which contained the majority of the stolen funds. The remaining stolen funds have been exchanged by the hacker and cross-chain transferred to the Ethereum mainnet.Cetus is collaborating with the Sui security team and several auditing firms to re-examine the contracts and conduct a multi-party joint audit to ensure the safe restoration of CLMM services after verification is completed. At the same time, Cetus will strengthen on-chain monitoring, initiate additional audits, and regularly publish security reports. To compensate affected LPs, Cetus is working with ecosystem partners to develop a recovery plan and is calling on Sui validators to support on-chain voting to expedite the return of user assets and rebuild confidence. While legal proceedings continue, Cetus is also providing the attacker with a white hat return opportunity. Cetus will soon issue a final ultimatum to them. Any updates will be transparently communicated to the community by Cetus.
ChainCatcher Building the Web3 world with innovators