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US President Trump: The US and Iran will meet this weekend.On April 18th, Federal Reserve Governor Waller stated that he is cautious about the need for interest rate cuts in the near term due to the energy shock caused by the war with Iran, and warned that the conflict could have a lasting impact on inflation. In his speech, Waller outlined two main scenarios. In the first scenario, if the Strait of Hormuz reopens and trade flows return to normal, officials will be able to ignore the surge in energy prices and shift their focus later this year to the weak labor market. He stated that if this scenario occurs, "I think one prospect is that underlying inflation will continue to decline toward the 2% target, which would make me cautious about cutting rates now and more inclined to support the labor market through rate cuts later this year when the outlook is more stable." However, he warned that oil prices and the overall market are underestimating the risks of a prolonged conflict. "On the inflation front, the risk is that the longer the conflict lasts and the longer energy prices remain high, the greater the likelihood that these high prices will permeate into other prices, as businesses will factor in the high costs of energy inputs when pricing." He stated that if this scenario occurs against the backdrop of a weak labor market, it will limit policy options. In this scenario, he would weigh the risks of higher inflation against a weaker labor market. "If the risks of inflation outweigh the risks of the labor market, it could mean keeping the policy rate in its current target range."Bank of Canada Governor Macklem: High energy costs are squeezing consumer and business investment. We will not allow rising energy prices to translate into sustained inflation.Bank of Canada Governor Macklem: We do not want to raise interest rates too early, but we are aware of the associated risks.Bank of Canada Governor Macklem: There remains “considerable uncertainty” regarding the continued impact on tanker shipping.

Insurers shun FTX-linked crypto firms as contagion risk mounts

Eric Stanberg

Dec 20, 2022 17:51

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According to multiple market players, insurers are refusing or restricting coverage to clients who have exposure to the insolvent crypto exchange FTX, leaving traders and exchanges of digital currencies uninsured for any losses from hacks, theft, or legal actions.


Due to the lack of market regulation and the unstable pricing of Bitcoin and other cryptocurrencies, insurers were previously hesitant to underwrite asset and directors and officers (D&O) protection insurance for cryptocurrency enterprises.


Now, worries have increased as a result of FTX's collapse last month.


Specialists in the Bermuda and Lloyd's of London insurance markets are demanding more openness from cryptocurrency companies on their exposure to FTX. Additionally, the insurers are recommending extensive policy exclusions for any claims brought about by the company's demise.


According to Kyle Nichols, president of broker Hugh Wood Canada Ltd., insurers are requesting clients to answer questions about whether they have assets listed on the exchange or invested in FTX.


According to Ben Davis, lead for digital assets at Lloyd's of London broker Superscript, clients who transacted with FTX are required to complete a questionnaire outlining the percentage of their exposure.


If a client can't access 40% of their total assets stored by FTX, he explained, "that will either be a decline or we're going to put on an exclusion that limits protection for any claims coming out of their monies held on FTX."


According to five insurance sources, the insurance policies that cover the protection of digital assets and the personal liability of directors and officials of organizations that deal in cryptocurrencies have exclusions that refuse payment for any claims resulting from the FTX bankruptcy. According to a broker, a few insurers have been pushing for plans to include a broad exclusion for everything connected to FTX.


Exclusions may serve as a failsafe for insurers and will make obtaining coverage even more challenging for businesses, according to insurers and brokers.


Even more stringent guidelines are used by Bermuda-based cryptocurrency insurance Relm, which has previously given coverage to organizations connected to FTX.


Relm co-founder Joe Ziolkowski declared, "We're just not going to offer the coverage if we have to include a crypto exclusion or a regulatory restriction.



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