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Ki Young Ju, founder of CryptoQuant, proposes that the U.S. could strategically accumulate 1 million Bitcoin (BTC) to offset a significant portion of its debt, potentially clearing 70% of domestically held liabilities by 2050. He emphasizes the need for Bitcoin to gain market acceptance and stability to be considered a viable reserve asset, akin to gold. Despite skepticism from some financial leaders, Ju believes that establishing a Strategic Bitcoin Reserve could enhance Bitcoin's credibility and role in global finance.
U.S. markets experienced optimism on November 25 as President-elect Trump’s tariff plans led to a dollar rally. He announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on China, citing illegal immigration and drug trade concerns. Additionally, Federal Reserve President Neel Kashkari hinted at a potential rate cut, while discussions for a ceasefire between Hezbollah and Israel progressed, impacting global markets.
Federal Reserve Bank of Minneapolis President Neel Kashkari indicated that considering a 25-basis-point interest rate cut at the December meeting is still reasonable. He noted the economy's resilience against higher rates may suggest a higher neutral rate, prompting questions about the effectiveness of current monetary policy in cooling demand and its impact on inflation.
Federal Reserve Bank of Minneapolis President Neel Kashkari indicated that a further interest-rate cut is still a viable option for the central bank's December meeting. He stated that considering a 25-basis-point reduction remains a reasonable discussion among policymakers.
The Swiss stock exchange closed lower, with the SMI down 0.70% at 8206.20 points, following concerns over potential U.S. interest rate hikes. Major banks like UBS and Credit Suisse faced significant losses, while defensive stocks like Nestlé and Novartis attempted to mitigate the downturn. Market experts anticipate a turbulent period ahead after recent volatility in U.S. markets.
UBS analysts indicate that U.S. monetary policy remains tight, with a potential interest rate hike in December still under discussion. Recent data shows a 2.6% year-on-year rise in consumer spending for October, aligning with expectations, while inflation appears to be moving in the right direction. UBS suggests that the current economic conditions do not warrant a highly restrictive monetary policy and recommends reallocating excess cash into high-quality bonds for better portfolio income.
UBS indicates that a December rate cut by the Fed is likely, as recent comments from officials suggest that current interest rates remain restrictive. Despite concerns about inflation and a stronger economy, the bank believes the disinflation trend will persist, allowing for continued easing. Investors are advised to consider quality fixed income strategies to enhance portfolio income.
US Treasury yields surged and the dollar strengthened ahead of key inflation data, with the 10-year yield rising to 4.43%. Inflation concerns are growing as economic data suggests a stronger economy, influencing expectations for Federal Reserve rate cuts, with a 70% chance of cuts under 50 basis points by June 2025. The consensus forecasts for October's CPI remain at 2.4% year-over-year, indicating a potential continuation of the disinflation trend, while Fed officials signal that current rates are still restrictive, suggesting further cuts are likely.
Minneapolis Fed President Neel Kashkari indicated that the decision for another interest-rate cut at the December meeting will hinge on upcoming inflation data. He noted that a significant surprise in inflation could alter the current outlook for policymakers.
Minneapolis Fed President Neel Kashkari stated that a robust economy and increased productivity could lead to fewer interest rate cuts than anticipated. He emphasized that it is premature to assess the impact of the incoming Trump administration's policies on inflation and rate adjustments, urging a wait-and-see approach.
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