Deutsche Bank: The "Beautiful Act" in the US Will Strongly Boost Dollar Stablecoins and Pressure the Fed to Cut Rates

Odaily Planet Daily News: The recent U.S. budget bill, known as the "Beautiful Act," is likely to pass a vote and become law. Unexpectedly, Federal Reserve officials, including Fed Governor Waller, have suggested a possible rate cut in July, and the Federal Reserve Board has begun discussing easing banking regulatory requirements. According to Deutsche Bank, the main points of this plan include: shifting U.S. Treasury ownership from foreign to domestic investors, increasing domestic financial repression, vigorously promoting the U.S. dollar stablecoin, pressuring the Fed to cut rates, and significantly weakening the U.S. dollar.
George Sarevelos, Global Head of FX Research at Deutsche Bank, stated in a recent report that while these events may seem unrelated, they actually signal a potential major shift in the U.S. macroeconomic policy mix in the coming years. They refer to this shift as the "Pennsylvania Plan," named after the street where the U.S. Treasury is located in Washington, D.C., and say the plan is intended to help the U.S. government cope with its massive debt.