25.05.08 WSJ

1. Macroeconomics

Title: Fed Warns of Rising Economic Risks as It Leaves Rates Steady
Source: The Wall Street Journal
Date: May 7, 2025
Key Takeaways:

• The Federal Reserve maintained interest rates amid escalating tariffs, with Chair Jerome Powell cautioning that these tariffs could lead to higher inflation, reduced economic growth, and increased unemployment.
• Tariffs on Chinese imports have reached 145%, disrupting supply chains and curbing business investment.
• Economic output contracted in the first quarter as businesses preemptively stocked goods to avoid tariff costs.
• Despite these concerns, Powell described the economy as solid but emphasized a "wait and see" approach, noting that the Fed could still act swiftly if necessary.
  Link: Read the article

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2. M&A / Private Equity

Title: Coinbase Strikes $2.9 Billion Deal for Major Crypto Options Platform
Source: The Wall Street Journal
Date: May 8, 2025
Key Takeaways:

• Coinbase announced a $2.9 billion acquisition of Deribit, the leading trading platform for bitcoin and ether options, to expand its footprint in the crypto derivatives market.
• The deal comprises $700 million in cash and 11 million Coinbase Class A shares.
• Deribit, based in Dubai, offers options, futures, and spot trading services, with 2024 trading volumes nearing $1.2 trillion.
• This acquisition positions Coinbase as a comprehensive player in derivatives trading, aligning with a broader surge in crypto industry dealmaking.
  Link: Read the article