Deutsche Bank: The US "Beautiful Big Act" will vigorously promote the US dollar stablecoin and put pressure on the Federal Reserve to cut interest rates

Odaily News The recent US budget bill "Beautiful Bill" is likely to be voted on and become law. Federal Reserve officials, including Federal Reserve Board member Waller, unexpectedly proposed a possible interest rate cut in July, and the Federal Reserve Board began to discuss the requirements for loosening bank supervision. Deutsche Bank said that the main contents of this plan include: the transfer of ownership of US Treasury bonds from foreign investors to domestic investors, increasing domestic financial repression, vigorously promoting US dollar stablecoins, putting pressure on the Federal Reserve to cut interest rates and significantly weakening the US dollar.
In a recent report, George Sarevelos, head of global foreign exchange research at Deutsche Bank, said that these events seem unrelated, but in fact they foreshadow possible major changes in the U.S. macroeconomic policy mix in the coming years. They call this shift the "Pennsylvania Plan," named after the street where the U.S. Treasury is located in Washington, D.C., and say the plan is designed to help the U.S. government cope with its massive debt.