Greg Guenthner:

Crypto Sinks After Hawkish FOMC

The Fed held its benchmark rate at 3.50% to 3.75% on Wednesday, a fourth straight hold, at Kevin Warsh’s first meeting as chair. That was expected; the rest was not.

The committee now pencils in at least one hike this year rather than a cut.

That was hawkish on its own, but it was Warsh’s commentary that confirmed it. Warsh repeatedly stressed the Fed’s commitment to price stability in his press conference, a signal he may not deliver the cuts many expected from a Trump nominee, and he removed the easing bias from the statement. He made it very clear that getting inflation back to the Fed’s 2% goal is the priority and that he wants to make it happen. The market read that as “hikes are coming.”

For crypto, this impacts the potential summer recovery and “winter is over” bounce. That thesis leaned on the Iran war ending and liquidity loosening, but a hawkish Fed pushing the other way, with rising yields, a firmer dollar, and no cuts ahead, tightens conditions for risk assets.

Bitcoin dropped to $64,000 in the aftermath, MSTR fell 5%, and STRC made a new low at $89.

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Davis Wilson:

Waymo Recalls Over 3,800 Robotaxis Over Risk of Driving Into Freeway Construction Zones

Waymo has issued a software recall for more than 3,800 of its robotaxis over concerns that the driverless cars could enter closed freeway construction zones and continue driving at speed, increasing the risk of a crash.

The Alphabet-owned robotaxi company filed a safety recall report with the U.S. National Highway Traffic Safety Administration (NHTSA) this week.

“Under certain circumstances, the AV may enter and drive at speed in freeway construction zones due to inappropriately prioritizing the avoidance of other freeway hazards and/or failing to recognize the construction zone,” the report states.

According to a NHTSA bulletin, Waymo is recalling 3,871 of its fifth-generation automated driving systems. The agency says the company is working on a software fix that will help the cars detect when they are in a construction zone and avoid entering one. In the meantime, Waymo has restricted the affected vehicles from driving on freeways.

The safety report says the recall was prompted by several incidents. In Phoenix, Waymo said five of its vehicles drove past ramp closure signs and into pre-planned freeway construction zones. In the Bay Area, seven Waymo AVs entered freeway lanes with active construction by driving between cones marking a lane closure.

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Ray Blanco:

NASA Picks Eric Schmidt’s Rocket Company for Mars Mission, Setting Up a Race With SpaceX

Relativity Space – a rocket maker acquired by former Google executive chair Eric Schmidt last year after stumbling on the path to orbit – might just beat SpaceX to Mars.

On Tuesday, NASA said it hired the company to build a spacecraft to house a suite of scientific instruments, launch it into space, and fly it to Mars.

The structure of the contract is akin to the deals that NASA made with SpaceX to fly cargo to the International Space Station, or Firefly Aerospace to put a lander on the Moon. The government agency handles the science, while the private company provides low-cost infrastructure.

Aeolus, as the mission is dubbed, will contain four instruments to measure and image Mars from orbit, providing what NASA expects to be the first daily, global view of dust, winds, and temperature in its atmosphere. The agency said that data will make it safer for landers and, someday, astronauts, to visit the surface of the Red Planet.

The mission is set to launch in 2028 – a rapid pace for Relativity to design and build the spacecraft to carry the Aeolus instruments, and finish building the rocket that will carry it. NASA did not disclose how much it is paying Relativity for the mission.

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