Dollar

Donald Trump

Zero

Donald Trump’s decisions continue to affect the US economy and politics, if not the World. Trump has been on a path to form a cabinet with the most interesting czars in America. The 47th POTUS has announced his nomination for the Treasury Secretary office as Scott Bessent. 
The dollar tanked after Trump nominated Scott Bessent, a hedge fund manager for Treasury Secretary. The post was previously held by the 78-year-old Janet Louise Yellen, who served under the Biden administration. 
Scott Bessent will lead the US Treasury Department, an influential government role that oversees tax policy, public debt, international finance, and sanctions.&nbsp; 
In his announcement, Trump said, “Scott is widely respected as one of the World’s foremost International Investors and Geopolitical and economic strategists. ” He added that Scott will “support my Policies that will drive US Competitiveness and stop unfair Trade imbalances.” 
On the other hand, Scott made it clear that he wants to extend the tax cuts made in Trump’s first term in office. He has defended the use of import tariffs, calling them a “useful negotiating tool.” During the campaign period, Scott told voters that Trump would usher in a “new golden age with de-regulation, low-cost energy, and low taxes.” 
<h3 class="wp-block-heading" id="span-style-font-weight-400-trump-s-pick-crashes-the-dollar-span">Trump’s pick crashes the dollar&nbsp;</h3> 
The dollar is currently the global reserve. Its index tracks several currencies, such as the yen and euro. The US dollar weakened on Monday, a tale of the sentiment that lies with investors. 
There have been expectations that Trump’s tariffs and tax cuts will drive inflation and put upward pressure on US interest rates. This caused the index to rally by more than 7% from the beginning of last month to Friday. 
The dollar has shown an impact, as there has been a downward trend of as much as 0.7% in Asia. The US’s major Asian trading partners were buoyed by news of the appointment, which came after market close on Friday. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdWSog6YKkER3ibbPFXFW3pJ-J_DaU0XmFmyNDRJnItrcifnZqa6gyAOkgm_2h9olKGGiNYH6DuMbe_sFs-g9f5NM2f4WM-HO9JY4I8GMX9HBK3qypgha6hWWSpLL7ptSoZGzLp?key=cbp9sdHqDy1h7PVDcJtGGpL9" alt="">
</figure> 
Source:<a href="https://www.cnbc.com/2024/11/25/us-treasury-yields-investors-cheer-treasury-secretary-pick-scott-bessent.html" rel="nofollow noopener" target="_blank"> CNBC</a> 
The US 10-year Treasury yield fell by 0.07% and now stands at 4.35%. Bond yields will also be affected as they move inversely to prices. Japan’s export-heavy Nikkei 225 index and South Korea’s Kospi both closed at 1.3%. 
“I guarantee you, the last thing [Trump] wants is to cause inflation,” said Bessent to CNBC in an interview earlier this month before he was picked.&nbsp; 
Bessent, the founder of Key Square Group, is expected to support the new president’s economic agenda, which includes tariffs and pro-business policies. Investors believe Bessent, an experienced Wall Street executive and fiscal conservative, will prioritize economic and market stability in the United States. 
<h3 class="wp-block-heading" id="span-style-font-weight-400-scott-s-nomination-may-still-lead-dollar-recovery-span">Scott’s nomination may still lead dollar recovery</h3> 
Trump’s victory had investors worried because of his take on tariffs. As a candidate, he pledged to impose 60% tariffs on goods from China, as well as 20% tariffs on goods from other countries.&nbsp; 
Scott’s nomination, however, eased investors’ fears about Trump’s trade tariff plans. He described sweeping tariffs as maximalist positions.” This was taken by investors as a sign that Trump’s policies may be moderated.&nbsp; 
Scott also said that he would recommend that tariffs be “layered in gradually” to mitigate the risk of shocks in the market. In addition, Paul Donavan, Chief economist at UBS Global Wealth Management said, “Having at least one significant advocate around the cabinet table arguing against persistent trade taxes is a positive for markets.” 
Aside from Scott’s nomination, the US debt and global geopolitical shifts are also playing major roles in the development of this downward trend. It is expected that with time, Scott’s decisions will benefit the dollar. 
<h3 class="wp-block-heading" id="span-style-font-weight-400-the-impact-of-the-dollar-s-fall-on-the-crypto-industry-span">The impact of the dollar’s fall on the crypto industry</h3> 
Bitcoin and altcoins are set to gain popularity as hedges against inflation and dollar devaluation. However, it could also attract increased regulatory scrutiny. Bitcoin is fighting its way to gain enough investor confidence to be a global reserve, as predicted by financiers. 
Stablecoins pegged to the US dollar might lose appeal in a dollar crisis. Meanwhile, alternatives like euro-backed, gold-backed, or inflation-proof flatcoins could gain traction. 
Although the US dollar has historically bounced back from crises, crypto’s high retention rates may lead to continued growth in adoption, even after the dollar stabilizes. The dollar’s downfall could actually do more good than harm. 
<h3 class="wp-block-heading" id="span-style-font-weight-400-upcoming-economic-data-reports-span">Upcoming economic data reports&nbsp;</h3> 
This week’s focus will be on several key data points that will be released ahead of a shorter trading week. Markets will close on Thursday for Thanksgiving and reopen early on Friday. 
The Federal Reserve’s most recent policy meeting minutes, as well as the September S&amp;P CoreLogic Case-Shiller national house price index, are due to be released on Tuesday. 
A number of economic updates are scheduled for Wednesday, but investors will be particularly interested in the October personal spending and income report, which includes the personal consumption and expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge. 
Economists expect a 2.8% year-over-year gain at the core level, excluding volatile food and energy costs, and a 2.3% year-over-year increase at the headline level, according to Dow Jones projections on Friday. 
As the final PCE release before the Fed’s December meeting, investors will be looking for signs about the central bank’s next move. 
From Zero to Web3 Pro: Your 90-Day <a href="https://www.cryptopolitan.com/crypto-career-launchpad-waitlist/?utm_source=cryptopolitan&amp;utm_medium=banner&amp;utm_campaign=ccl-waitlist-3" target="_blank">Career Launch Plan</a>

Dollar tanks after Donald Trump names Scott Bessent to Treasury role

Table of Contents

Cryptopolitan_News

Other articles published on Nov 25, 2024

Massive whale movements in ZDEX; Three coins taking the market by storm

Bitcoin, Binance, Ethereum, Solana And Ripple : The Biggest Crypto News Of The Past Week

Is It Too Late To Buy MAD? Mad Price Surges 32% And This Might Be The Next Crypto To Explode

MicroStrategy’s Bitcoin Holdings Reach $24B with Latest Acquisition

Ripple Mints 10.5 Million RLUSD In Major Testing Phase

Bitcoin Made Nearly 41% Monthly Gain in November, Sets Biggest Green Candle

Join our free newsletter for daily crypto updates!