U.S. Strategic Cryptocurrency Reserve:
President Donald Trump announced the inclusion of five major cryptocurrencies—Bitcoin, Ethereum, $XRP , $SOL
, and Cardano—into the U.S. Federal Reserve's balance sheet. This move aims to establish the United States as the "crypto capital of the world.
Regulatory Changes:
The administration has repealed the anti-money laundering rule that required U.S. shell companies to disclose their beneficial owners and has terminated the Department of Justice's anti-kleptocracy initiative. Critics argue these actions could facilitate illicit activities and disproportionately benefit certain individuals within the administration.
New Tariffs and Market Reactions:
The U.S. has implemented new tariffs on imports from Canada, Mexico, and China, escalating global trade tensions. In retaliation, Canada imposed a 25% tariff on $27 billion worth of U.S. goods, and China targeted U.S. agricultural imports. These developments have led to declines in major Asian stock indices and increased market volatility.
Federal Funds Rate: The Federal Reserve currently maintains the benchmark interest rate within the range of 4.25% to 4.5%. Despite previous rate cuts in late 2024, the Fed has adopted a "higher for longer" stance due to persistent inflationary pressures.
Inflatio Rate: As of January 2025, the annual inflation rate stands at 3%, slightly above the Federal Reserve's target of 2%.