Morning Squawk: Economy Grows as Tariffs Delayed, S&P 500 Reaches Record High

Coinbase is a major cryptocurrency exchange and infrastructure provider that enables individuals, businesses, and institutions to buy, sell, store, transfer, and build with digital assets. Coinbase operates retail and professional trading platforms (Coinbase and Coinbase Pro), custody services for institutions, a developer-friendly API and wallets, staking and payment solutions, and business-focused products such as Coinbase Business and Coinbase Custody to support on‑chain activity and fiat-crypto flows[5][6]. Founded in 2012, Coinbase grew from a simple wallet and brokerage into a regulated, publicly listed company that aims to increase “economic freedom” by making crypto accessible to a global audience[5][7]. Over the 2010s it expanded its supported assets and products, added institutional custody and compliance capabilities, and completed a direct listing on Nasdaq in 2021 as Coinbase Global (COIN)[3][7]. Key achievements include becoming one of the largest regulated exchanges by users and assets on platform, building a broad product ecosystem that serves retail users, institutions and developers, and driving adoption of blockchain-native tools such as USDC and on‑chain settlement rails[5][4]. Coinbase reports large volumes and assets on platform, and has scaled its workforce and partner network across 100+ countries while pursuing vertically integrated infrastructure like its Layer‑2 and unified monetary rails to become an “Everything Exchange” for crypto and financial services[5][4]. Today Coinbase positions itself beyond a simple exchange: it markets an integrated financial stack that combines trading, custody, payments, and developer infrastructure, with continued emphasis on regulatory compliance and institutional trust as competitive advantages[4][5]. Notable aspects include its public-company governance, focus on regulation and security, and strategic push to tie liquidity, settlement, and products together to keep capital and activity within its platform[4][7]. Limitations and risks for readers: Coinbase’s outlook depends on

Microsoft is a global technology leader that develops, licenses, and supports a broad range of software, services, devices, and solutions. Founded in 1975 by Bill Gates and Paul Allen, Microsoft initially gained prominence through its MS-DOS operating system and later Windows, which became the dominant PC operating system worldwide. Over time, the company expanded into cloud computing, productivity software, gaming, and AI, evolving from a software vendor into a comprehensive technology ecosystem[2][4]. Today, Microsoft’s core business revolves around its cloud platform, Azure, which supports enterprise digital transformation and AI innovation. In fiscal year 2025, Microsoft reported a strong financial performance with revenue reaching $76.4 billion, an 18% increase year-over-year, driven largely by a 27% growth in Microsoft Cloud revenue to $46.7 billion. Operating income rose 23%, and net income increased 24%, underscoring robust profitability. The company’s strategic focus on cloud and AI is central to its growth, with Azure surpassing $75 billion in revenue, reflecting broad adoption across industries[3][5]. Microsoft also leads in cybersecurity solutions, with Microsoft Sentinel recognized as a leader in Gartner’s 2025 Magic Quadrant for Security Information and Event Management (SIEM). This AI-powered cloud service enhances threat detection and response, reflecting Microsoft’s commitment to innovation in security and hybrid cloud environments[6]. The company employs over 220,000 people worldwide and continues to drive digital transformation both internally and for its customers. Its vision embraces the integration of AI and human intelligence, pioneering the “Frontier Firm” model—organizations that blend AI agents with human judgment to scale rapidly and innovate continuously[1][4]. With a diversified portfolio including Office 365, LinkedIn, Xbox, and Surface devices, Microsoft remains a dominant force in technology, shaping the future of work, security, and AI-enabled business transformation[2][3][6].

## Overview and Mission The Federal Reserve, often called the "Fed," is the central bank of the United States, established by Congress in 1913 to provide the nation with a safer, more flexible, and stable monetary and financial system[1]. Its mission centers on a dual mandate from Congress: to promote maximum employment and maintain price stability, ensuring the dollar retains its value over time[1]. The Fed operates through a unique hybrid structure, combining a national Board of Governors in Washington, D.C., with 12 independent regional Reserve Banks, including institutions like the Cleveland Fed[1]. This decentralized setup allows the Fed to closely monitor economic conditions across diverse regions, industries, and communities, while maintaining independence from short-term political influences[1]. ## Key Functions The Fed’s responsibilities are broad and vital to the U.S. economy. It conducts monetary policy—primarily by influencing interest rates—to achieve its employment and inflation goals[2]. The Fed also supervises and regulates banks to ensure the safety and soundness of the financial system, works to minimize systemic risks, and fosters efficient payment and settlement systems[2]. Additionally, it promotes consumer protection and community development, addressing emerging issues through research, supervision, and enforcement of consumer laws[2]. ## History and Evolution The Federal Reserve is the third central bank in U.S. history, following two failed attempts in the 19th century[1]. Its creation was a response to the financial turbulence of the early 20th century, aiming to prevent crises and stabilize the economy. Over time, the Fed has evolved, adopting more transparent and inclusive policymaking processes. For example, it now conducts regular reviews of its monetary policy framework, engaging with academics, businesses, and the public to refine its strategies and communications[3][5]. ## Recent Developments and Achievements In 2025, the Fed completed its second major review of its monetary policy strategy, tools, and communications, reaffirming its commitment to transparenc