🔥 Trump suddenly escalates: Pressure for the Federal Reserve to cut interest rates intensifies, $200 billion tax reduction plan initiated.
A series of signals just came in indicating that the White House is simultaneously advancing loosening policies in both monetary and fiscal directions. The President is directly pressuring the new Chairman of the Federal Reserve, demanding to "immediately lower interest rates." This open pressure on the central bank is rare in modern history, and the underlying attitude is quite clear: it is not a suggestion to lower interest rates, but a demand to accelerate the pace of easing.
At the same time, financial aspects are also accelerating. The previously discussed $200 billion tariff refund plan is being adjusted, and it is likely to be implemented in the form of tax reductions. The clever aspect of this approach is that the money does not go directly into accounts, but is realized through reduced tax burdens. The result is the same: the disposable income in the hands of ordinary people effectively increases, and consumption motivation is subsequently released.
💡 What effect will the confluence of these two forces produce?
Interest rate cuts open the liquidity floodgates. The cost of acquiring funds decreases, and investors are more inclined to chase high-yield assets, including stocks, cryptocurrencies, and other riskier varieties. At the same time, tax cuts enhance residents' purchasing power, stimulate consumption expectations, and the imagination for economic growth is reopened.
The market has already caught a whiff of this trend. The recent upward momentum over the past few days is essentially a pre-pricing of expectations regarding these policies. Once the relevant details are finalized, it is likely to trigger a synchronous rise across asset classes—stocks, commodities, and cryptocurrencies could all benefit simultaneously.
⚠️ But reality is always more complex than imagination.
There are two uncertain factors here. First, whether the Federal Reserve will yield to political pressure and accelerate the pace of interest rate cuts depends on the economic data. Second, whether the tax reduction plan can pass congressional approval and how the timeline is set are still variables. Before the policy is truly implemented, high market volatility is inevitable.
🎯 The actual operational idea is to closely monitor the latest developments in the Federal Reserve meeting and the congressional fiscal agenda, maintaining flexibility in positions before policies become clear. In times of volatility, speed of response is the key to returns.
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IronHeadMiner
· 15h ago
Is the interest rate cut really here? This wave of liquidity explosion is likely to make ZEC, SUI, and UNI go to da moon... But those people in Congress are starting to dawdle again, we'll have to wait.
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rugged_again
· 15h ago
The expectation of interest rate cuts is indeed a bit harsh this time, but can Trump's set of tactics really move the Fed? To put it bluntly, it still depends on the data to speak, we can all write superficial articles.
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DegenWhisperer
· 15h ago
Is the interest rate cut really coming? Damn, my short positions are about to get liquidated...
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BuyTheTop
· 15h ago
With interest rate cuts and tax reductions working together, this wave of Liquidity easing is indeed appealing, but don't get too excited before it's finalized; in an era of Fluctuation, responsiveness is key.
$ZEC $SUI $UNI
🔥 Trump suddenly escalates: Pressure for the Federal Reserve to cut interest rates intensifies, $200 billion tax reduction plan initiated.
A series of signals just came in indicating that the White House is simultaneously advancing loosening policies in both monetary and fiscal directions. The President is directly pressuring the new Chairman of the Federal Reserve, demanding to "immediately lower interest rates." This open pressure on the central bank is rare in modern history, and the underlying attitude is quite clear: it is not a suggestion to lower interest rates, but a demand to accelerate the pace of easing.
At the same time, financial aspects are also accelerating. The previously discussed $200 billion tariff refund plan is being adjusted, and it is likely to be implemented in the form of tax reductions. The clever aspect of this approach is that the money does not go directly into accounts, but is realized through reduced tax burdens. The result is the same: the disposable income in the hands of ordinary people effectively increases, and consumption motivation is subsequently released.
💡 What effect will the confluence of these two forces produce?
Interest rate cuts open the liquidity floodgates. The cost of acquiring funds decreases, and investors are more inclined to chase high-yield assets, including stocks, cryptocurrencies, and other riskier varieties. At the same time, tax cuts enhance residents' purchasing power, stimulate consumption expectations, and the imagination for economic growth is reopened.
The market has already caught a whiff of this trend. The recent upward momentum over the past few days is essentially a pre-pricing of expectations regarding these policies. Once the relevant details are finalized, it is likely to trigger a synchronous rise across asset classes—stocks, commodities, and cryptocurrencies could all benefit simultaneously.
⚠️ But reality is always more complex than imagination.
There are two uncertain factors here. First, whether the Federal Reserve will yield to political pressure and accelerate the pace of interest rate cuts depends on the economic data. Second, whether the tax reduction plan can pass congressional approval and how the timeline is set are still variables. Before the policy is truly implemented, high market volatility is inevitable.
🎯 The actual operational idea is to closely monitor the latest developments in the Federal Reserve meeting and the congressional fiscal agenda, maintaining flexibility in positions before policies become clear. In times of volatility, speed of response is the key to returns.