President Donald Trump’s call for aggressive interest rate cuts could result in inflation surging. The US dollar has dropped over 10% since January, adding to inflationary pressures, while trade policies continue to elevate prices.
Bitcoin stands to gain as a hedge against inflation or a store of value with declining US economic credibility. Future rate cuts could lead to Bitcoin trading sideways until inflation expectations align with reality, potentially rising to new heights.
Maintaining current interest rates helps preserve the Fed’s credibility but won’t prevent inflation. As a result, yields could rise gradually, impacting US debt servicing costs, while Bitcoin may emerge as a valuable non-sovereign asset.
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