President Donald Trump's new National Security Strategy calls for increased global fiscal expansion and military spending, urging NATO allies to raise defense spending to 5% of GDP. This shift could lead to heightened government borrowing, potentially driving up bond yields and inflation, complicating interest rate cuts.
The strategy, which emphasizes an "America First" agenda, also impacts the crypto market, as it may hinder the rapid interest rate reductions that have been anticipated. While gold has surged 60% this year, Bitcoin has struggled, down nearly 5% year-to-date, challenging its status as "digital gold." The Federal Reserve is expected to cut rates by 25 basis points next week, but the strategy's call for global expansion suggests steep rate cuts may be unlikely.
Trump's Security Strategy Prompts Concerns Over Bitcoin and Bond Yields
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
