Nov 29, 2017

The Fed may create its own digital currency

Dan Primack, author of Pro Rata

Rebecca Zisser / Axios

The U.S. Federal Reserve is considering the creation of its own digital currency, according to New York Fed President William Dudley, who was speaking today at a conference. Per Reuters:

It is something we are starting to think about: what would it mean to have a digital currency, what would it mean to offer it, do we actually need it.

Dudley also cautioned against viewing current digital currencies like Bitcoin as stable stores of value.

Bottom line: America's central bank is thinking about creating something based on decentralized technology.

Best name suggestion so far comes from @shep_ben: AmeriCoin.

Go deeper

HBCUs are missing from the discussion on venture capital's diversity

Illustration: Eniola Odetunde/Axios

Venture capital is beginning a belated conversation about its dearth of black investors and support of black founders, but hasn't yet turned its attention to the trivial participation of historically black colleges and universities (HBCUs) as limited partners in funds.

Why it matters: This increases educational and economic inequality, as the vast majority of VC profits go to limited partners.

Unemployment rate falls to 13.3% in May

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. unemployment rate fell to 13.3% in May, with 2.5 million jobs gained, the government said on Friday.

Why it matters: The far better-than-expected numbers show a surprising improvement in the job market, which has been devastated by the coronavirus pandemic.

The difficulty of calculating the real unemployment rate

Data: U.S. Department of Labor; Note: Initial traditional state claims from the weeks of May 23 and 30, continuing traditional claims from May 23. Initial PUA claims from May 16, 23, and 30, continuing PUA and other programs from May 16; Chart: Andrew Witherspoon/Axios

The shocking May jobs report — with a decline in the unemployment rate to 13.3% and more than 2 million jobs added — destroyed expectations of a much worse economic picture.

Why it matters: Traditional economic reports have failed to keep up with the devastation of the coronavirus pandemic and have made it nearly impossible for researchers to determine the state of the U.S. labor market or the economy.