Trump Allies Push to Sell Fed Gold for Bitcoin, Powell Says No Need to Rush Rate Cuts

Trump Allies Push to Sell Fed Gold for Bitcoin, Powell Says No Need to Rush Rate CutsThis content is from the Knowledge Planet column "Xiaopeng's Financial Charts," which uses charts to tell stories about the financial world. Here, we read 10,000 pieces of information daily, make 100 notes, and select 20 valuable financial images

Trump Allies Push to Sell Fed Gold for Bitcoin, Powell Says No Need to Rush Rate Cuts

This content is from the Knowledge Planet column "Xiaopeng's Financial Charts," which uses charts to tell stories about the financial world. Here, we read 10,000 pieces of information daily, make 100 notes, and select 20 valuable financial images. A good picture is worth a thousand words. It can help you understand global events more clearly and intuitively, and make better decisions.

Trump Allies Push to Sell Some Fed Gold to Establish a "Strategic Bitcoin Reserve."

U.S. Senator Cynthia Lummis plans to introduce legislation in the next Congress that would require the sale of some of the Federal Reserve's gold reserves to buy 1 million bitcoins, establishing a "strategic bitcoin reserve" as proposed by Trump. The funding would come from the proceeds of the gold sale, not adding to the government deficit.

According to Bloomberg, buying 1 million bitcoins would cost about $90 billion at current market prices. Crypto prediction platform Polymarket currently implies a 31% probability of Trump creating a bitcoin reserve.

Federal Reserve Chair Powell: Economy Shows No Signs of Needing to Rush Rate Cuts

In a speech in Dallas, Federal Reserve Chair Powell said, "The economy is not giving us any signals that we need to rush into lowering interest rates." He also emphasized that the 2% inflation target has not yet been achieved and that the Fed is committed to "finishing the job."

After Powell's speech, the probability of no rate cut in December surged to 38% in prediction markets, while the likelihood of a 25-basis-point cut fell to 59%. This stands in stark contrast to the Fed's decision to cut rates by 50 basis points two months ago.

It is noteworthy that Fed policy has also lost its influence on long-term yields. The 10-year U.S. Treasury yield has deviated significantly from the typical path after a rate cut.

Goldman Sachs: Tariffs Increased Consumer Prices in the Last Trade War

A Goldman Sachs study showed that tariffs imposed by the US on Chinese goods during the last US-China trade war pushed up consumer prices.

Retail Investors Sold $4.8 Billion in Japanese Stocks Last Week, Most in Eight Months

The Nikkei reported that retail investors sold $4.8 billion in Japanese stocks last week, the highest level in eight months.

Trump Plans to Eliminate $7,500 Electric Vehicle Tax Credit

Trump plans to eliminate the $7,500 electric vehicle tax credit. Analyst Dan Ives believes this could actually boost Tesla in the long run. While the termination of the tax credit could hurt overall electric vehicle demand, Tesla's size and market position mean it is better equipped to weather the change than competitors such as General Motors, Ford, and Rivian. Tesla CEO Elon Musk has also said that the cutting of subsidies could hurt competitors more than Tesla. Tesla fell 5.77% overnight, while rival Rivian dropped 14.3%.

Disclaimer

This article does not constitute personal investment advice and does not represent the platform's viewpoint. Markets are risky, and investment should be carried out with caution. Please make independent judgments and decisions.