On June 28, Yahoo Finance reported that the recent U.S. budget bill titled 'The Great Bill' is likely to be passed and become law. Officials from the U.S. Federal Reserve, including Governor Waller, unexpectedly suggested the possibility of lowering interest rates in July, while the Federal Reserve began discussing the need to loosen bank controls.
Deutsche Bank stated that the main content of this plan includes: transferring ownership of U.S. Treasury bonds from foreign investors to domestic investors, increasing internal financial repression, actively promoting the use of USD cryptocurrency, pressuring the Federal Reserve to lower interest rates, and weakening the USD. George Sarevelos, head of global foreign exchange research at Deutsche Bank, noted in a recent report that these events seem unrelated, but in reality, they indicate that U.S. macroeconomic policy may undergo significant changes in the coming years. They call this transformation the 'Pennsylvania Plan,' named after the street where the U.S. Treasury is headquartered in Washington, D.C., this plan aims to help the U.S. government cope with its massive debt.
The U.S. budget plan and its impact on interest rates
When the Great Bill is passed, it could create fundamental changes in U.S. economic policy. One of the most important issues is the possibility of lowering interest rates in July. Lowering interest rates could help stimulate economic growth but also carries the risk of weakening the USD and increasing national debt.
The reduction in interest rates will affect borrowing costs, aimed at supporting businesses and individuals. However, investors also need to consider carefully when deciding to invest in the market, as the indirect effects of this could lead to volatility in the financial markets.
Deutsche Bank's assessment of the new proposal
Deutsche Bank has made it clear that transferring bond ownership from abroad to domestically is an important step. This not only reflects a change in investment methods but also signals that the U.S. government is seeking to gain more control over the financial situation.
The use of the USD cryptocurrency will provide the government with a new tool in conducting financial transactions and supporting domestic payment needs. This also indicates a shift in the financial strategy of the banking system.
The value of the Pennsylvania Plan
The Pennsylvania plan is not only a milestone for the U.S. government in handling debt. It also reflects growing concerns about financial security and the stability of the USD. In a rapidly changing world, this plan is expected to help the U.S. maintain its position.
This transformation could bring new opportunities for domestic investors, as well as promote innovations in the financial sector. However, caution is also needed when implementing these measures, as no policy is without risk.
Challenges and Opportunities
The change in budget and monetary policy will come with significant challenges. Increased financial repression may make it difficult for small and medium-sized enterprises to access capital. These policies need to be implemented carefully to avoid harming the economy.
Despite many drawbacks, the Pennsylvania Plan also opens up many opportunities for new developments in finance and investment. The transfer of bond ownership could lead to the creation of a more sustainable financial system for the future.
Summary
The new U.S. budget plan could create significant changes in financial and monetary policy. The Federal Reserve is likely to lower interest rates, while Deutsche Bank predicts that these measures will not only affect the market but also create opportunities for investors. This combination promises to bring many exciting developments for the U.S. economy in the near future.
Source: https://tintucbitcoin.com/usd-on-dinh-hoa-ky-giam-lai-suat/
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