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🇺🇸 *US Multinational Enterprises Shrink Domestically, Grow Abroad* 📉\n\n- Worldwide employment by US MNEs decreased 0.4% in 2023 to 43.9M workers.\n- US parent companies saw employment drop 0.8% to 29.9M, while foreign affiliates grew 0.2% to 14M.\n- Value added by US MNEs decreased 0.6% to $6.9T. US parents' value added fell 1% to $5.3T.\n- R&D and property, plant, and equipment expenditures increased.⬆️\n- Top locations for foreign affiliate employment: India, Mexico, and the UK.\n\n\n*Outlook for USD*\nBearish 🐻. While R&D and capital expenditures increased, the overall drop in employment and value added by US parent companies suggests a potential slowdown in the US economy, which could negatively impact the USD. The slight growth in foreign affiliates might not be enough to offset the domestic decline.\n

🇺🇸 *FOMC Minutes Released: Hints at Further Rate Hikes* 📈\n\nThe Federal Reserve released the minutes of its July 29-30 FOMC meeting. The minutes suggest that most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy. 🚨\n\n*Outlook for USD*\nBullish 🐂. The hawkish tone of the minutes, suggesting potential further interest rate hikes, supports a strong USD.\n

🇺🇸 *US Fed's Stance on Blockchain and Banking's Future* 🏛️\n\nFederal Reserve Vice Chair Michelle Bowman discussed the role of blockchain technology in the financial system. Key takeaways:\n\n- A "seismic shift" is underway, potentially transforming finance through blockchain, AI, and quantum computing. 🚀\n- Tokenization can improve asset transfer, payments, and access to capital. 💱\n- Banks are adapting to the digital asset space, providing custody services and exploring stablecoin integration. 🏦\n- Regulators are moving away from hindering “reputational risk” and towards fostering innovation. 💡\n- Focus on a tailored regulatory framework for digital assets, balancing risk and innovation. ⚖️\n- Call for collaboration between industry and regulators.🤝\n- Fed staff may hold small amounts of crypto for better understanding. 🤓\n\n*Outlook for USD*\nBearish 🐻. While the speech emphasizes innovation and a more open approach to digital assets, this could potentially lead to a decreased reliance on the USD as other digital currencies and payment systems gain traction. The emphasis on faster and cheaper payment systems with blockchain technology can be interpreted as a shift away from traditional financial systems in which the USD plays a central role.\n