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Deutsche Bank: US 'Beautiful Act' to Strongly Promote USD Stablecoin and Pressure Fed to Cut Rates
Summary: According to reports, the recent US budget bill 'Beautiful Act' is likely to be passed by vote and become law. This includes unexpected statements from Federal Reserve officials, such as the possibility of a rate cut in July by Fed Governor Waller. The Fed Board has also begun discussions on relaxing bank regulatory requirements. Deutsche ...
According to reports, the recent US budget bill 'Beautiful Act' is likely to be passed by vote and become law. This includes unexpected statements from Federal Reserve officials, such as the possibility of a rate cut in July by Fed Governor Waller. The Fed Board has also begun discussions on relaxing bank regulatory requirements. Deutsche Bank stated that the main components of this plan include transferring ownership of US Treasury bonds from foreign investors to domestic investors, increasing domestic financial repression, strongly promoting USD stablecoins, pressuring the Fed to cut rates, and causing a significant weakening of the USD.
George Saravelos, Global Head of FX Research at Deutsche Bank, stated in a recent report that while these events may seem unrelated, they actually indicate significant changes in the future macroeconomic policy mix in the US. They refer to this shift as the 'Pennsylvania Plan', named after the street in Washington DC where the US Treasury is located, and state that the plan aims to help the US government address its massive debt.
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Link: Deutsche Bank: US 'Beautiful Act' to Strongly Promote USD Stablecoin and Pressure Fed to Cut Rates [Copy]
