U.S. markets closed

  • S&P 500

    4,188.13
    -8.92 (-0.21%)
     

  • Dow 30

    34,312.46
    -81.52 (-0.24%)
     

  • Nasdaq

    13,657.17
    -4.00 (-0.03%)
     

  • Russell 2000

    2,205.75
    -21.59 (-0.97%)
     

  • Crude Oil

    65.99
    -0.06 (-0.09%)
     

  • Gold

    1,899.90
    +15.40 (+0.82%)
     

  • Silver

    28.12
    +0.22 (+0.77%)
     

  • EUR/USD

    1.2253
    +0.0033 (+0.27%)
     

  • 10-Yr Bond

    1.5640
    -0.0440 (-2.74%)
     

  • GBP/USD

    1.4151
    -0.0004 (-0.03%)
     

  • USD/JPY

    108.7590
    +0.0130 (+0.01%)
     

  • BTC-USD

    37,547.60
    -1,632.65 (-4.17%)
     

  • CMC Crypto 200

    959.70
    -24.03 (-2.44%)
     

  • FTSE 100

    7,029.79
    -21.80 (-0.31%)
     

  • Nikkei 225

    28,553.98
    +189.37 (+0.67%)
     

GameStop Soars as WallStreetBets Favorites Stage Late Rally

  • Oops!
    Something went wrong.
    Please try again later.
Bailey Lipschultz
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- GameStop Corp. helped lead a bevy of retail trader favorites higher on Tuesday as investors touted the stocks on social media platforms including Twitter, Stocktwits and trader chatroom WallStreetBets.

GameStop soared 16% to $209.43, the highest since March 17, propelled by an influx in mid-afternoon trading in New York. Movie theater company AMC Entertainment Holdings Inc. also stood out, with the stock jumping 20% to a roughly four-month high.

A basket of 37 so-called meme stocks tracked by Bloomberg spiked 5.4% to break above its 50-day moving average for the first time since March. The rally came as trading volumes jumped for AMC and Gamestop, as well as for companies including headphone maker Koss Corp. and clothing company Naked Brand Group Ltd.

More than 200 million shares of AMC changed hands Tuesday, making it the second most actively traded stock with a value greater than $1. For GameStop, more than 14 million shares were traded -- more than triple what’s been typical over the past five sessions.

When the dust settled on Tuesday’s session, Koss was the group’s top performer, staging a 23% rally to $20.78 while Naked Brand rose 7%. Other retail favorites like Express Inc. and Sundial Growers Inc. climbed more than 5%.

The rally marks a fourth day of gains for the group and another notable departure from the broader market’s performance. Most major groups in the S&P 500 fell after a gauge of new U.S. home sales slid by more than forecast as higher prices restrained demand. The index dropped 0.2%.

(Updates share movement throughout, adds additional stock performance in fifth paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Recommended Stories

  • After percolating for days, GameStop and AMC finally break out on big day for meme stocks

    The warning signs have been evident for much of May, and Tuesday finally saw huge surges in Reddit's favorite stocks.

  • 2 Stocks to Buy Now Instead of Dogecoin

    Did you miss out on the latest cryptocurrency meme run? Consider two stocks with great catalysts for growth ahead.

  • Why AMC Entertainment Is Jumping 6% Higher

    Shares of AMC Entertainment Holdings (NYSE: AMC) were jumping 6% higher in midday trading Tuesday after Citi analyst Jason Bazinet raised his price target on the movie theater chain to $3.70 per share while also maintaining his sell rating on the stock. Investors continue to ignore what the monied class says about AMC primarily because it is mostly just bearish predictions of a collapse. Just as shopping malls are in rough shape, but are still hugely benefiting from so-called "revenge shopping," or consumers going out and shopping just because they can now, theaters could very well see a boom of sorts just because film lovers have been kept out of theaters for so long.

  • This superyacht CEO didn't sell Jeff Bezos a $500M boat but confirms demand is 'absolutely incredible'

    Amazon CEO Jeff Bezos is reportedly building a massive superyacht. One industry insider explains the craze.%

  • Stock market news live updates: Stocks slightly lower, giving back some gains after economic data disappoints

    Stocks drifted sideways Tuesday, fluctuating between small gains and losses after new data on consumer confidence missed expectations.

  • VW Says It’s Keeping Lamborghini After $9.2 Billion Offer Report

    (Bloomberg) -- Volkswagen AG reiterated plans to maintain ownership of Lamborghini after a car magazine said it was offered 7.5 billion euros ($9.2 billion) for the brand.A Volkswagen spokesman said there’s been no change in the group’s position to retain the Lamborghini brand. Autocar reported earlier Tuesday that the company had received the offer from Quantum Group AG, a new Zurich-based holding company that has formed a consortium with London-headquartered investment firm Centricus Asset Management.VW took a step in November toward preparing Lamborghini and its Italian motorcycle brand Ducati for strategic options such as an initial public offering or sale, but announced a month later it was committed to keeping them in the fold. The assurances were made as part of a broader resolution of conflicts between Chief Executive Officer Herbert Diess and key stakeholders including labor leaders.Lamborghini is owned by the VW group through its Audi subsidiary. A spokesperson for Audi also said it is not for sale.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Bitcoin ETF Backers See Canada Fund’s Slump as Reason to Believe

    (Bloomberg) -- This month’s cryptocurrency meltdown has at least one bright spot for advocates of a Bitcoin exchange-traded fund in the U.S.As the price of the largest digital asset cratered, the $660 million Purpose Bitcoin ETF (ticker BTCC) in Canada -- North America’s first such fund -- moved in lockstep.That may not sound like a good thing, but it kept the ETF’s price stable relative to the value of assets it holds.The ability to keep trading without huge premiums or discounts appearing in a fund’s price is a key argument in the case for an exchange-traded crypto vehicle. In contrast to BTCC, for example, the $23.9 billion Grayscale Bitcoin Trust (GBTC) at one point traded about 21% below its net-asset value during the turmoil.Regulators have yet to approve a U.S. ETF, in part because of concerns on how a fund would be able to handle the token’s infamous volatility. But if Canada’s ETF is anything to go by, the concern might be misplaced.The reason why BTCC was able to keep its price discount to a minimum during the selloff boils down to the fact that it is an ETF. To keep its price in line with its holdings, specialized traders either create or redeem shares of the ETF to adjust the outstanding supply as demand shifts. That process doesn’t exist for trusts like GBTC, which doesn’t allow for share redemptions -- which can create dramatic dislocations.“While the recent nasty selloff in Bitcoin will likely spook the SEC, it should do the exact opposite and give them maximum confidence to approve, as it showed once again how well the ETF can handle pressure thanks to their fungibility,” said Eric Balchunas, Bloomberg Intelligence ETF analyst. Investors “deserve to get something that tracks the price well -- and ETFs have shown they are the best structure to do that.”Bitcoin has plunged over 33% so far this month, dragged down by renewed regulatory concerns from China and criticism from Tesla Inc.’s Elon Musk about its energy usage. The world’s largest cryptocurrency is hovering near $37,900 per coin, down roughly 40% from a mid-April peak.At least 11 companies are looking to launch a Bitcoin ETF in the U.S., and nine of them have filed since the end of 2020, according to a tally kept by Bloomberg Intelligence. VanEck renewed that push with a filing in late December, but the SEC has delayed a decision on its application until at least June. VanEck also filed for an ETF tracking the second-largest cryptocurrency Ether.Hopes for a Bitcoin ETF approval in 2021 have faded somewhat in the past few weeks. New SEC chairman Gary Gensler told Congress that the crypto market “could benefit from greater investor protection,” and later a letter from the Securities and Exchange Commission staff warned that Bitcoin is “highly speculative” and volatile.But Bitcoin’s turbulence shouldn’t prevent the SEC from giving the green light, according to CFRA Research’s Todd Rosenbluth.“The regulatory approval process for a U.S. Bitcoin ETF appears more focused on whether they have comfort in the risks related to Bitcoin in a fund and whether the fund could become too large to handle the lack of liquidity in the market,” said Rosenbluth, the firm’s head of ETF and mutual fund research. “I don’t think the volatility for Bitcoin impacts the decision-making process, but the fact that demand remains high could add data to support their concerns about the impact of the fund’s potential size and inability to close to new investors.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Obese Pigs in China Are Fueling Relentless Slump in Pork Prices

    (Bloomberg) -- Obese pigs in China are being blamed for worsening a sudden rout in the country’s pork prices.Farmers have been fattening hogs since late last year to almost double their normal weight -- roughly the size of a pygmy hippo or a female polar bear -- in the hope the animals will generate higher returns should prices rebound.Cao Tao, a pig trader in the northwestern province of Shaanxi, said many of the swine he’s buying weigh more than 200 kilograms, compared with their usual size of around 125 kilograms. “Some farmers are holding onto their larger pigs on hopes of a price rebound,” he said.Instead, Chinese wholesale pork prices have plunged more than 40% since mid-January amid sluggish demand, increased imports and panic selling by farmers after fresh outbreaks of African swine fever. Muyuan Foods Co., the country’s biggest pig breeder, said this week it’s expecting a continued drop in domestic hog prices, with the slump not bottoming out until next year or even 2023.Many farmers had fattened their pigs in anticipation of a recovery in pork prices, but the rout since February has triggered a sell-off of these large animals that may be delaying a rebound in prices, according to Lin Guofa, a senior analyst at consultancy Bric Agriculture Group.“When these farms sell together, the sell-off causes an explosive price slump,” he said. Farms in the southwest and south are still holding a large number of “cow-sized” pigs, which could be sold as the weather warms and push down prices for a while yet, Lin said.China’s hog herd was devastated by African swine fever in 2018 and, while numbers have recovered since then, a recent resurgence has driven up pork imports. The agriculture ministry said in April that the country’s pig herd may recover to usual levels by June or July, although the number of hogs available for slaughter may take another four months to get back to normal.“Super-sized” pigs are partially to blame for the drop in pork prices, Qiu Huaji, the head of swine infectious diseases at Harbin Veterinary Research Institute, said at a conference last week. A price rebound had been expected in the third quarter due to the resurgence of African swine fever cutting herds by almost half in some areas, he said.See also: China’s Swine Fever Borders to Reshape $300 Billion IndustryThe impact of the obese hogs on pork prices is also being complicated by new rules that prohibit the transport of live pigs across the boundaries of five areas. The regulations -- aimed at combating the spread of African swine fever - are reshaping the market and leading to regional price differences.Qian Xiaoyun, a farmer in the northern city of Tianjin, said her family wouldn’t be breeding larger pigs after the price slump and had sold all of their animals that weighed more than 150 kilograms. “The falling pork prices and high corn prices give poor returns on those larger hogs as they eat more,” she said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Erdogan Reshuffles Central Bank Again With New Deputy

    (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Turkey’s President Recep Tayyip Erdogan appointed a new deputy governor at the country’s central bank, tapping an economist and long-serving member of the institution in his latest leadership rejig.While Erdogan’s previous sudden decisions to swap out senior positions at the central bank jolted markets, this time the lira steadied to trade 0.1% stronger against the dollar as of 10:05 a.m. local time, following only a brief drop.Semih Tumen, a labor economist and professor of economics at Ankara-based TED University, was named to the role early on Tuesday, replacing Oguzhan Ozbas, according to a decree published in the Official Gazette.Read more: Erdogan Ousts Central-Bank Head, Installs Interest-Rate AllyThe move comes two months after Erdogan fired Naci Agbal, the bank’s third governor in less than two years, sending Turkish markets into a nosedive. Erdogan, who holds unorthodox theories about monetary policy and its impact on inflation, also replaced deputy governor Murat Cetinkaya in March.Tumen has worked in different roles at the central bank for 16 years until 2018, leaving the monetary authority after serving as a director general in charge of the structural economic research department. Since then, he’s been an adviser at the Turkish presidency’s human resources office.Four of seven members of Turkey’s rate-setting committee now have less than a year of experience at their jobs, including new Governor Sahap Kavcioglu.The decision to fire Agbal, who had sought to restore the central bank’s credibility, had set off a swift reversal of investor enthusiasm. The new governor has pledged policy continuity after his appointment and kept interest rates unchanged for a second month in May.Inflation, LiraStill, annual inflation is near a two-year high and the lira has lost about 14% against the dollar since Agbal was ousted. Public support for Erdogan’s ruling AK Party meanwhile hit a record low last month, according to prominent pollsters, amid disenchantment with the government’s handling of the economy.Ozbas, the most recently ousted deputy governor, was appointed in July 2019, when Erdogan’s son-in-law Berat Albayrak was overseeing the economy as treasury and finance minister.Last November, he criticized the central bank policies under former Governor Murat Uysal after working as his deputy, saying backdoor policy tightening toward the end of last year was “unnecessarily complicating the monetary stance.”(Updates with market reaction in second paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Of Course China Is Anti-Bitcoin: Look What Happened to Jack Ma

    China's assault on Bitcoin is part of a broader struggle to foster innovation while maintaining control, says our columnist.

  • S&P 500 Price Forecast – Stock Markets Testing Major Figure Again

    The S&P 500 has rallied quite significantly during the trading session on Monday as we continue to see upward pressure yet again.

  • PG&E to Sell San Francisco Headquarters for $800 Million

    (Bloomberg) -- PG&E Corp. has reached a deal to sell its iconic San Francisco headquarters to real estate joint-venture Hines Atlas for $800 million as the utility giant moves to cut costs after it emerged from bankruptcy last year.PG&E, which plans to move to Oakland next year, needs approval from state regulators to sell the 1.7 million-square-foot (158,000-square-meter) complex, which includes 77 Beale Street and 245 Market Street, according to a statement Monday.The sale comes as office markets around the globe have been battered by the coronavirus pandemic. One broker estimated in 2019 that PG&E’s headquarters could bring in more than $1 billion. The utility giant is one of the most high-profile companies to leave San Francisco for Oakland, a less expensive city located across San Francisco Bay.Nearly a dozen bids were submitted for the property, according to a person familiar with the matter. That level of interest suggests real estate investors are willing to bet on a rebound for office demand in the city.“It’s a fantastic bet on San Francisco,” said J.D. Lumpkin, executive managing director at commercial real estate brokerage Cushman & Wakefield in San Francisco, who wasn’t involved in the deal. “While San Francisco has taken its lumps through Covid, perhaps more than other cities, there’s a lot of evidence that we will rebound over the next two or three years.”PG&E didn’t immediately respond to a request for comment about the bids. The company’s shares rose as much as 2.1% Monday.Unlike some other large property sales in San Francisco since the pandemic, the complex will require a substantial amount of renovation. It also doesn’t have a tenant in place, so the buyers will have to fill it in a few years once the redevelopment is finished.Also See: KKR Said to Buy $1.08 Billion San Francisco Dropbox OfficesSan Francisco’s overall office vacancy rate in the first quarter shattered the previous record high hit during the dot-com bust at the turn of the century, according to CBRE Group Inc. That’s pushed rent down and weighed on the value of buildings.The sale price is about $200 million less than expected, Citigroup Inc. utility analyst Ryan Levine wrote in a research note Monday. That raises the prospect that PG&E may need to raise equity this year, he said.Offset BillsPG&E intends to distribute about $400 million from its gain on the sale to customers over five years to offset bill increases as it invests in safety and operational improvements. In an added benefit, most PG&E workers will have shorter commutes to their new office, the company said.CBRE’s San Francisco Capital Markets team brokered the deal.PG&E filed for bankruptcy in early 2019 after collapsing under liabilities from wildfires sparked by its equipment. Though the company exited Chapter 11 last year, it remains burdened by about $42 billion of debt, raising concerns about its financial durability and ability to make the investments required to fire-proof its grid.Hines is one of the biggest private real estate investors and managers in the world, according to its website. Hines Atlas is a joint venture between Hines and another investor, a Hines spokesman said. He declined to name the other investor.(Adds details of bid beginning in fourth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Boom in China Firms Listing in the U.S. Comes to Sudden Halt

    (Bloomberg) -- At least three Chinese companies have put their plans to list in the U.S. on hold, heralding a slowdown in what’s been a record start to a year for initial public offerings by mainland and Hong Kong firms.A bike-sharing platform, a podcaster and a cloud computing firm are among popular Chinese corporates holding off plans for a U.S. float, put off by recent market declines, souring investor sentiment toward fast-growth companies and lackluster debuts by peers like Waterdrop Inc.Hello Inc., Ximalaya Inc. and Qiniu Ltd. are postponing plans to take orders from investors, even though the three had filed paperwork with the Securities and Exchange Commission well over two weeks ago. In the U.S., companies can kick off their roadshows two weeks after filing publicly and most typically stick to that timetable.“The recent broad market selloff, combined with the correction of the IPO market since the beginning of last month when some new issuers tanked during their debuts, may make the market conditions less predictable for newcomers who are ‘physically’ ready -- meaning they have cleared all regulatory hurdles for IPO -- to get out of the door,” said Stephanie Tang, head of private equity for Greater China at law firm Hogan Lovells. “Some participants may choose to monitor the market for more stable conditions.”The delays throw a wrench in a listings flood by Chinese and Hong Kong companies in the U.S. that already reached $7.1 billion year-to-date -- the fastest pace on record -- after booming in 2020. Demand for IPOs surged as a wave of global stimulus money, ultra-low interest rates and rallying stock markets lured investors despite Sino-American tensions and the continued risk of mainland stocks being kicked off U.S. exchanges.READ: Stock Market’s Million Little Dramas Come Down to a Supply GlutThe S&P 500 Index capped its biggest two-week slide since February on Friday amid mounting investor concern over inflation and its impact on tech and other growth stocks. China’s CSI 300 Index remains in a technical correction, having fallen 10% from a February peak, while the Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the U.S., has slumped more than 30% from its high that month.Waiting OnHello, which offers a bike-sharing platform plus electric scooters for sale, has delayed its planned launch and is still undecided on its prospective valuation given rising investor caution about new shares, Bloomberg News has reported. It had been planning to raise between $500 million and $1 billion in the offering, although the final number will depend on valuations, according to one person with knowledge of the matter.Online podcast and radio services startup Ximalaya and enterprise cloud services provider Qiniu have put their listings on hold after beginning to gauge investor interest at the end of April, people with knowledge of the matter said, asking not to be identified as the information isn’t public.The sounding out of investors, or pre-marketing process, generally comes after filing for an IPO and before formal order-taking in a roadshow. Hello declined to comment while Qiniu didn’t immediately respond to an emailed request for comment. Ximalaya’s IPO process is ongoing and the company will seek public listing at an appropriate time depending on market conditions, it said in response to questions.Weak DebutsThe poor performance of recent Chinese debutants has also sapped investor confidence. Insurance tech firm Waterdrop has plunged 38% from its offer price since going public earlier this month. Onion Global Ltd., a lifestyle brand platform, has fallen more than 8% below its IPO price.In fact, almost 59% or specifically 20 of the 34 Chinese firms that have listed in the U.S. this year are under water, data compiled by Bloomberg show, among them the two largest IPOs -- e-cigarette maker RLX Technology Inc. and online Q&A site Zhihu Inc. Of the ones that listed in 2020, just 40% are trading below their IPO prices.The recent volatility in global markets has spooked U.S. companies as well. They have also been delaying floats or facing weak debuts.For some, the current challenges faced by Chinese listing hopefuls are likely to be transitory, with the hotly-anticipated IPO of ride-hailing giant Didi Chuxing Inc., which has filed confidentially for a multibillion-dollar offering, set to prove the real test of investor appetite for the China story.Apart from Hello and the two other firms that are said to delay IPO plans after kicking off their pre-marketing process, Chinese road freight transport platform ForU Worldwide Inc., which filed for a U.S. offering on May 13, and online education company Zhangmen Education Inc., which filed on May 19, are waiting in the wings though they have yet to pass the two-week hallmark.“There is a natural strong growth in China which international investors will still want to invest in over the longer term,” said Gary Dugan, chief executive officer at the Global CIO Office in Singapore.(Updates prices throughout, adds more details in the second-last paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • 3 Things You Need to Know About China’s Crypto Crackdown

    The crackdown notice from the State Council has sent shockwaves across the crypto industry in China.

  • Belize Defaults on Debt for Second Time in a Year, S&P Says

    (Bloomberg) -- Belize is on course for its second default in less than a year after missing an interest payment, triggering a downgrade by S&P Global Ratings.The Central American nation was cut to SD, or “selective default,” from CC by S&P on Monday after failing to make a $6.5 million interest payment on its $526.5 million so-called superbond due in 2034. It marks the country’s fifth restructuring or default event in the past 14 years.“We do not expect the missed interest payment to be made during the stated 30-day grace period, since the Belizean government recently announced a consent solicitation seeking to extend the grace period applicable to the May 20 coupon to Sept. 19,” Mexico City-based analysts Omar De la Torre and Livia Honsel wrote in a statement announcing the move.The nation’s 2034 notes were little changed near 41 cents on the U.S. dollar as of 10:20 a.m. on Tuesday.In February, the rating company warned that Belize would struggle to stay current on payments, and by the following month, the government said it was looking to engage bondholders in restructuring negotiations. Since then, Belize has asked its creditors to accept a 30% haircut and a maturity delay on its notes, while an investor committee complained of a lack of transparency.On May 19, the government said in a statement that it was seeking an extension to the grace period until September. Bondholders have until 5 p.m. in New York on June 1 to accept the nation’s consent solicitation.Acceptance of the request by a sufficient share of bondholders would likely be treated by S&P as a distressed exchange, given the nature of the request and relatively few options for creditors, according to the rating company.“Belize faces a constrained fiscal position and has low external liquidity,” the analysts wrote. “Social and financial pressures caused by the pandemic, given Belize’s precarious economy and health system, have shifted the government’s policy priorities and weakened its capacity to pay its debt service.”S&P announced its decision after the bond market close on Monday.(Updates pricing in fourth paragraph; adds S&P comments in seventh.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • VW says Lamborghini is not for sale after reported $9.2 billion bid

    The non-binding offer sets out terms for the purchase of Automobili Lamborghini by Switzerland's Quantum Group AG, which has formed a consortium with London-based investment firm Centricus Asset Management, Autocar reported. The report, citing offer documents, also said that the consortium would include job assurances for existing Lamborghini employees for up to five years and the creation of 850 new jobs.

  • Singapore clears LSE deal for Refinitiv after FX pledge

    Singapore's competition authority has approved the London Stock Exchange Group's $27 billion acquisition of data and analytics company Refinitiv provided the bourse continues to offer certain foreign exchange benchmarks to rivals. The Competition and Consumer Commission of Singapore (CCCS)gave the conditional approval after examining whether the deal, which transforms the 300 year old bourse into a one-stop shop for data, trading and analytics, threatened competition in the currency market. The LSE has committed to making Refinitiv's WM/Reuters foreign exchange benchmarks available to existing and future customers to provide index licencing services or clearing services in Singapore, CCCS said in a statement, adding that the commitment, effective from Monday, was for 10 years.

  • 4 Little-Known Cryptocurrencies That Beat Bitcoin During the Crash

    Polygon, Helium, Celsius, and Maker may not be household names, but they are being explored as potentially useful technologies.

  • USD/JPY Price Forecast – US Dollar Pulls Back to 50 day EMA Before Shooting Higher

    The US dollar has pulled back initially during the course of the trading session on Tuesday to show a little bit of hesitancy, but you can see clearly that the 50 day EMA has offered support.

  • Fed's Brainard says central bank stepping up exploration of digital dollar

    (Reuters) -Growing digital currency options could lead to a "fragmentation" of the payment system that poses financial risks for households and businesses, Federal Reserve Governor Lael Brainard said on Monday in a speech that outlined the major policy questions the Fed will need to address as it explores the potential development of a digital version of the U.S. dollar. As the holder of the world's reserve currency, the United States must be highly involved as digital payments become more common and other countries develop digital currencies that can be used to send money across borders, Brainard said. "The Federal Reserve is stepping up its research and public engagement on a digital version of the U.S. dollar," Brainard said in remarks made during a virtual conference organized by CoinDesk.