President Donald Trump announced that he will provide at least $2,000 per person to most Americans, excluding high-income earners. The money will come from tariff revenues. Both the stock market and the crypto market reacted positively in the short term, driven by expectations of increased consumer spending from the cash injection.
In the past, under President Joe Biden, the largest stimulus package — the American Rescue Plan Act of 2021, worth $1.9 trillion — included direct payments of $1,400 per person to many households. This policy helped strengthen consumer confidence and pushed indexes such as the S&P 500 and Nasdaq Composite to record highs.
However, the direct cash injections also contributed to a sharp rise in inflation, forcing the Federal Reserve (FED) to raise interest rates aggressively during 2022–2023. Therefore, while this announcement may bring short-term optimism, the market should remain cautious about the risk of renewed inflation and potential Fed intervention if the stimulus proves too strong. $BTC
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