{"id":58784,"date":"2026-02-19T10:38:20","date_gmt":"2026-02-19T14:38:20","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/"},"modified":"2026-02-19T10:38:20","modified_gmt":"2026-02-19T14:38:20","slug":"us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/","title":{"rendered":"US Markets Open Lower as Fed\u2019s Kashkari Defends Independence and Slams Crypto"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Markets_Retreat_at_the_Opening_Bell\" >Markets Retreat at the Opening Bell<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Kashkari_Defends_Fed_Autonomy_and_Evaluates_AI\" >Kashkari Defends Fed Autonomy and Evaluates AI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Harsh_Words_for_Crypto_Amid_White_House_Meetings\" >Harsh Words for Crypto Amid White House Meetings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Geopolitical_Friction_and_Energy_Stability\" >Geopolitical Friction and Energy Stability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-open-lower-as-feds-kashkari-defends-independence-and-slams-crypto\/58784\/#Corporate_Highlights_and_Regulatory_Scrutiny\" >Corporate Highlights and Regulatory Scrutiny<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>US equity markets opened in the red<\/strong>, with the <strong>Nasdaq Composite<\/strong> leading the decline, dropping <strong>111.65 points (0.49%)<\/strong> to <strong>22,641.99<\/strong>.<\/li>\n<li><strong>Minneapolis Fed President Neel Kashkari<\/strong> issued a stern defense of <strong>central bank independence<\/strong>, claiming recent comments from Kevin Hassett regarding Fed research were an attempt to compromise the institution.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> following reports that the <strong>United Kingdom<\/strong> is blocking the U.S. from using <strong>RAF bases<\/strong> for potential military strikes against <strong>Iran<\/strong>.<\/li>\n<li><strong>Kashkari dismissed cryptocurrency as &quot;utterly useless,&quot;<\/strong> questioning the value of stablecoins compared to existing services like Venmo while expressing optimism about <strong>AI-driven productivity<\/strong>.<\/li>\n<li><strong>Choice Hotels (<a href=\"\/stock\/CHH\">CHH<\/a>)<\/strong> released its 2026 outlook, forecasting <strong>adjusted EBITDA<\/strong> between <strong>$632 million and $647 million<\/strong> and <strong>diluted EPS<\/strong> of <strong>$5.72 to $5.94<\/strong>.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Markets_Retreat_at_the_Opening_Bell\"><\/span>Markets Retreat at the Opening Bell<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Wall Street started the trading session on a downward trajectory as investors weighed fresh geopolitical risks and hawkish commentary from Federal Reserve officials. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> fell <strong>24.06 points (0.35%)<\/strong> to <strong>6,857.25<\/strong>, while the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> slipped <strong>125.06 points (0.25%)<\/strong> to <strong>49,537.60<\/strong>.<\/p>\n<p>Market sentiment was dampened by a mix of cooling labor market expectations and uncertainty surrounding international relations. <em>Traders appear to be taking a cautious stance as the Fed signals that interest rates are currently &quot;pretty close to neutral.&quot;<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Kashkari_Defends_Fed_Autonomy_and_Evaluates_AI\"><\/span>Kashkari Defends Fed Autonomy and Evaluates AI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Minneapolis Fed President <strong>Neel Kashkari<\/strong> made headlines by addressing recent criticisms of the central bank&#39;s internal research. Kashkari stated that comments made by <strong>Kevin Hassett<\/strong> regarding Fed staff studies were &quot;just another step&quot; in an effort to <strong>undermine Fed independence<\/strong>, asserting that the Fed remains committed to data-driven decisions without political distractions.<\/p>\n<p>On the economic front, Kashkari noted that the <strong>labor market remains resilient<\/strong> but is showing signs of softening, describing it as &quot;decent to pretty good.&quot; He expressed significant optimism regarding <strong>Artificial Intelligence<\/strong>, predicting it could provide a <strong>productivity boost<\/strong> over the next 5 to 10 years, though he noted the Fed is maintaining <strong>strong guardrails<\/strong> for its own internal AI use to protect confidential data.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Harsh_Words_for_Crypto_Amid_White_House_Meetings\"><\/span>Harsh Words for Crypto Amid White House Meetings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a sharp contrast to his views on AI, Kashkari labeled the <strong>cryptocurrency sector &quot;utterly useless.&quot;<\/strong> He specifically questioned the utility of <strong>stablecoins<\/strong>, arguing they offer little that established services like Venmo do not already provide. These comments come as the <strong>White House<\/strong> hosts its third meeting on <strong>stablecoin yield<\/strong>, featuring industry leaders such as <strong>Paul Grewal<\/strong> of Coinbase (<a href=\"\/stock\/COIN\">COIN<\/a>).<\/p>\n<p><em>The digital asset market continues to face a skeptical regulatory environment despite increasing institutional integration.<\/em> The Fed&#39;s stance suggests a high bar for crypto assets to prove their functional value within the broader financial system.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Friction_and_Energy_Stability\"><\/span>Geopolitical Friction and Energy Stability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>International relations took a complicated turn as reports surfaced that the <strong>UK is blocking the Trump administration<\/strong> from using <strong>RAF bases<\/strong> for strikes against <strong>Iran<\/strong>. This comes despite <strong>Israeli Prime Minister Benjamin Netanyahu<\/strong> stating that Israel and the U.S. are working in &quot;lockstep&quot; and that the U.S. views Israel as a &quot;model ally.&quot; Netanyahu warned that <strong>Iran<\/strong> would face an &quot;unimaginable&quot; response if it attacked Israel.<\/p>\n<p>In the energy sector, <strong>IEA Director Fatih Birol<\/strong> signaled that global oil markets are currently &quot;very comfortable.&quot; Birol noted that <strong>demand growth<\/strong> is currently less than <strong>one million barrels per day<\/strong>, suggesting that the market is well-supplied regardless of upcoming <strong>OPEC<\/strong> decisions on March 1.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Highlights_and_Regulatory_Scrutiny\"><\/span>Corporate Highlights and Regulatory Scrutiny<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Choice Hotels (<a href=\"\/stock\/CHH\">CHH<\/a>)<\/strong> provided a detailed outlook for 2026, projecting <strong>net income<\/strong> between <strong>$265 million and $275 million<\/strong>. The company expects <strong>net capital outlays<\/strong> for hotel development to decline to a range of <strong>$20 million to $45 million<\/strong>, reflecting a shift in its capital allocation strategy.<\/p>\n<p>Meanwhile, <strong>Senator Elizabeth Warren<\/strong> is reportedly seeking information from the Federal Reserve regarding changes to <strong>banking supervision<\/strong>. According to the Wall Street Journal, Warren has questioned <strong>Fed Governor Michelle Bowman<\/strong> about shifts in regulation, signaling continued legislative pressure on how the central bank oversees the nation&#39;s largest financial institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US equity markets opened in the red, with the Nasdaq Composite leading the decline, dropping 111.65 points (0.49%) 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