The chances of a recession increase, the markets crash and President Donald Trump advances with prices.
This volatile gaming book is strangely similar to Trump’s first mandate, which started with a blow before giving way to one of the biggest bull markets in recent history. However, this time, Trump seems to have abandoned the stock market as one of his favorite success barometers, opting rather to focus on long -term health of the American economy.
Trump promised to inaugurate the next “golden age” in America, but before it happens, the economy may need a painful dose of medicine. There are growing speculations that Trump deliberately attaches growing fears and crushes the market to force the federal reserve to reduce interest rates.
It may seem crazy, but there can be a method for Trump’s apparent madness.
A coordinated crash
For decades, there has been a tacit rule in Washington that the president must remain close to the Fed policy. However, Trump threw this agreement by the window when he publicly said that the Fed should consult the president on interest rates.
In February, Trump went to social networks to say that “interest rates should be reduced”. When the central bank refused to play ball, the Trump administration took things “in their own hands [by] The crushing of asset prices in order to force Jerome Powell to reduce interest rates, ”according to the entrepreneur and commentator on the Anthony Poseliano market.
Pospiano and others say that the Trump administration is intentionally placing the stock market to reduce borrowing costs before the US government refinance 7 billions of debt dollars in the next six months.
The plan seems to work, the yield at 10 years plunging nearly 60 basic points of its peak earlier this year. Although the Fed is not supposed to reduce interest rates at its next meeting in March, the chances of a drop in May are now greater than 50%.
Source: Alex Kruger
The recession ratings increase to 40%: JPMorgan
The sale of the crypto and the stock market on March 10 was largely motivated by the fears that the American economy was heading for a recession. These fears were resolved on the bond market, the yield at 10 years diving at the lowest level since Trump was elected.
In this context, JPMorgan analysts have increased their chances of recession this year to 40%, compared to 30%.
The growing chances of recession crash into the cryptography market. Source: Coinmarketcap
“We see a significant risk that the United States will fall into recession this year due to extreme policies in the United States,” analysts said.
Goldman Sachs economists also fear that Trump’s trade war will plunge the US economy into a net slowdown. They increased their 12 -month recession rates to 20% against 15%.
According to Goldman, the prospects could worsen if the Trump administration remains firm in its policies “even in the face of very worse data”.
The BlackRock Buidl between Defi
The REVE TOKENITIZATION COMPANY (RWA) Securitize has selected REDSTONE to provide data flows for its tokenized products, including the USD Institutional Digital Liquidity Fund in BlackRock (BUIDL). With the partnership, security funds can now be used on DEFI products, including Morpho, Compound and Spark. This could extend the use of BUIDL in monetary market exchanges and guaranteed DEFI platforms.
Blackrock’s Buidl is the largest tokenized cash fund in the world, reaching $ 500 million in management in less than four months. It was launched on the Ethereum network and can be accessible by security. The fund invests in all its assets in cash, in American cash tickets and in buying agreements.
ETH ETH?
CBOE BZX, one of the main exchange titles, whose head office is in Chicago, seeks the approval of American regulators to add stimulation in the Fidelity Ether (ETH) exchange fund.
According to a file of March 11, CBOE offers a change of rule which would allow the Fondelity Ethereum Fund “to put or make a point of putting to join, all or part of the ether of the trust through one or more providing ignition providers”.
The markup could potentially stimulate the attraction of ETHERs by giving investors access to returns.
In February, the Securities and Exchange Commission (SEC) recognized more than a dozen ETF documents linked to the crypto. Recognizing the regulatory pivot of the dry since the inauguration of President Trump, CBOE tries to strike while the iron is hot.
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