Trump calls Powell a fool and has repeatedly demanded rate cuts without success, now resorting to verbal attacks. Trump wants the interest rate to drop to around 1%, while it is currently at 4.50%, with each additional point costing an extra 36 million dollars. Powell stated he will not resign and will serve until the end of his term next year. Trump may want to fire the Federal Reserve Chairman but lacks the authority. On July 16, Trump did consider removing Powell and even showed prepared letters to lawmakers, causing a market sell-off across stocks, currencies, and bonds. However, later that day he backtracked, saying he didn’t intend to do so but didn’t rule out any possibilities. There are internal disagreements in the Fed about rate cuts. Governor Waller surprisingly said a 25 basis point cut should occur in July, aligning with Trump's views. However, other officials like Kugler and Williams stated that they should pause rate cuts for a while. Big moves are happening in the crypto space! The U.S. House of Representatives has just passed three major cryptocurrency bills, including a genius bill regulating stablecoins. There are also rumors that Trump plans to sign an executive order allowing 401k retirement plans to invest in cryptocurrencies, gold, and other alternative assets. Interestingly, analysts at JPMorgan believe that whether Powell is fired is no longer important, as the market has already begun pricing in the policies of the next chairman. Regardless of who takes over, the dovish support for loose monetary policy will only grow. The Trump administration accuses the Federal Reserve headquarters of luxurious waste in renovations, to which Powell responded in writing that the project has been under strict supervision since it was approved in 2017.
While Wall Street is tense over the Federal Reserve's internal conflict, the crypto market has reached a historic turning point. In the early hours of July 18, the U.S. House of Representatives overwhelmingly passed three major cryptocurrency bills: the genius bill establishes the first regulatory framework for stablecoins, the market structure bill creates complete trading rules for crypto assets, and the anti-CBDC bill blocks the Federal Reserve's ambitions for a digital currency. Even more shockingly, Trump has drafted an executive order allowing 401k retirement funds to enter cryptocurrencies, gold, and private equity! The gigantic 9 trillion dollar pension beast is about to be unleashed, with institutions like Blackstone and BlackRock sharpening their knives. The moment the policy floodgates open, Bitcoin is expected to surge past 120,000 dollars, Ethereum will rise above 3,500 dollars, and the total crypto market cap will increase by 100 billion in a single day.
Brother Lei's Viewpoint:
Political infighting = market chaos! Historical patterns show that when the Federal Reserve has internal conflicts, Bitcoin goes crazy!
In March 2020, Trump criticized the Fed for being slow to act, resulting in the Fed flooding the market, and Bitcoin surged from 3800 to 12000 in three months!
Brother Lei's Analysis:
The entry of pension funds marks the real bull market! Think about how in the 1980s, after pensions were allowed to be allocated to gold, the price of gold increased sevenfold over ten years! Now, Bitcoin's market value is only 1.4 trillion; even if 1% of the 9 trillion in pension funds comes in, the crypto market will take off!
Brother Lei's Summary: The opportunity for sudden wealth is hidden within risks!
Opportunity Outlook: Federal Reserve's No. 2 Waller suddenly switched sides, calling for a rate cut in July! As long as the rate cut begins, altcoins will at least double!
Risk Outlook: Trump may play dirty! The market bets on a 24% chance he will fire Powell; if he really does it, the dollar might collapse!
Want to buy at the bottom? Now is the time! Once pension funds officially enter the market, you won't even see the taillights! Follow Brother Lei; next week’s live stream will teach you how to use interest rate cut hedging strategies to seize doubling market opportunities, with a limited-time lottery for the wealth code of the bull market!
