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On April 4, according to people familiar with the matter, US Republicans are considering creating a new tax bracket for people with incomes of $1 million or more to offset part of the cost of the tax bill, which is in stark contrast to the Republican Partys decades-long opposition to tax increases. People familiar with the matter said the new top tax rate would be between 39% and 40%. Trump administration officials and allies on Capitol Hill are beginning to draft a tax plan, hoping to pass it in the coming months. In addition, Republicans are also considering raising the top tax rate on incomes over $626,350 from the current 37% to 39.6%, which means the top tax rate will return to the level set by former President Obama.US President Trump: Britain is happy with US tariffs.Foreign central banks held U.S. Treasuries worth -$1.76 billion in the week ending March 27, compared with -$14.896 billion in the previous week.Trump trade adviser Navarro: Tariffs are to protect the American people and increase revenue.April 4th, as a new wave of tariffs upends global markets, the dollar has wiped out all of its gains since Trump won the election last November. "The dollar bear market has arrived and its roaring," said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi. He added that the dollar could fall 10% this year as the United States "teeters on the brink of recession." This is in stark contrast to earlier this year, when Trumps policy plans such as tax cuts and tariffs were seen as a reason to bet on a rebound in the dollar. In February, U.S. Treasury Secretary Bessant said Trumps policies were "completely consistent" with a strong dollar, confirming the governments strong dollar stance. "We may be in the early stages of a structural sell-off in the dollar," said Ed Al-Hussainy, strategist at Columbia Threadneedle Investment.

Investors May Turn From Crypto on Fed Interest Hike Hopes

Cory Russell

Apr 20, 2022 09:51


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  • This year, the Fed may raise its rate objective to as high as 3.5 percent.

  • According to economists, being overly proactive might lead to a lengthier slump.

  • This month, crypto markets have lost more than 12% of their value.


Cryptocurrencies may have an issue with interest rates; as soon as they start to rise, trade volumes drop and markets plummet.


As the Federal Reserve of the United States increases interest rates, as it did last month, investors may be drawn to riskier assets. The Federal Reserve hiked interest rates from 0.25 percent to 0.5 percent in March, which is still a small increase but the first in almost three years.


President of the Federal Reserve Bank, James Bullard, has said that the central bank must work quickly in order to attain a rate of roughly 3.5 percent this year. According to April 18 estimates, this may be accomplished with successive half-point increments and even 75-point rises. At the Fed's meeting in early May, Fed Chair Jerome Powell stated a 50-basis-point hike may be considered.

Defending Against Inflation

Central banks throughout the globe are stepping up their anti-inflation efforts, but many are expecting a lengthy and drawn-out war. Inflation in the United States is at a four-decade high of 8.5 percent, driving investors into safe-haven commodities like gold and Bitcoin (BTC).


Investor appetite for crypto assets looks to be decreasing as the interest rate recovery continues. Higher borrowing rates may also have an effect on people who are using leverage to invest in bitcoin.


On the other side, economist Mohamed El-Erian told CNBC on Monday that if the Fed raises its interest rate objective, gold and Bitcoin prices would rise.


He went on to say that the Fed may be afraid that failing to meet its objective "may force this economy into a longer-term recession, not just a short-term recession."


When fiat currencies are weak, bitcoin and crypto assets are in high demand; however, this has not been the case lately.

Cryptocurrency Markets Are In Decline

Since the beginning of the month, the market capitalization of cryptocurrencies has dropped 12.3 percent. As a consequence, the space industry has lost roughly $300 billion.


The overall market capitalization is now just under $2 trillion, down 34% from its all-time high of just over $3 trillion in November.


Markets have gained a tiny 2% in the last 24 hours, but the overall trend in digital assets remains gloomy, and this trend might continue for the remainder of the year.

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