🇺🇸🏦Deutsche Bank: US "Beautification Act" to Strongly Promote US Dollar Stablecoins and Pressure the Federal Reserve to Cut Interest Rates

The recent US budget bill, the "Beautification Act," is very likely to pass a vote and become law. Federal Reserve officials, including Fed Governor Waller, have unexpectedly suggested that interest rate cuts may occur in July, and the Federal Reserve Board has begun discussing relaxing bank regulatory requirements. Deutsche Bank says the main contents of this plan include: transferring ownership of US Treasury bonds from foreign investors to domestic investors, increasing domestic financial repression, strongly promoting US dollar stablecoins, pressuring the Federal Reserve to cut interest rates, and significantly weakening the US dollar.
George Sarevelos, Global Head of FX Research at Deutsche Bank, said in a recent report that these events may seem unrelated, but in fact, they foreshadow a significant change in the US macroeconomic policy mix in the coming years. They call this shift the "Pennsylvania Plan," named after the street where the US Treasury Department is located in Washington, D.C., and say the plan is designed to help the US government cope with its massive debt.