Elgrantano7

The IMF has warned that Trump’s plans to impose higher blanket tariffs by up to 20%, lower taxes, and restrict immigration could lead to higher inflation and prevent Fed interest rate cuts. The fund substantially raised its forecast for U.S. growth in 2025 but cut Eurozone expectations.

The Financial Times reported that the IMF increased the U.S. economy’s growth forecast for 2025 to 2.7%, up from the previous estimate of 2.2%, and 0.1% lower than last year’s estimate. The economic growth forecast put the U.S. ahead of all the other G7 countries. 

Pierre-Olivier Gourinchas, chief economist at the IMF, unveiled forecasts that predicted faster-than-expected growth for the U.S. economy. He added that Trump’s policies could lead to a combination of increased demand and declining supply, possibly reigniting U.S. buying pressures.

IMF warns of Trump’s policy risks and predicts continued U.S. growth

The IMF updated its World Economic Outlook and October forecast, predicting a 2.1% U.S. economy expansion in 2026. The growth estimates unveiled three days before Trump’s inauguration did not include policy proposals from the incoming administration which the fund could not yet integrate in its forecasts. 

Trump’s laid out aggressive plans prompted jitters in bond markets that were cautious about excessive deficits and inflation risks. The IMF’s central forecasts assumed a continued easing of global inflation that would permit further rate cuts in big economies. The FT’s analysis signalled that parts of Trump’s agenda could undermine efforts to curb inflation. 

According to the IMF, proposed U.S. policies such as a looser fiscal policy and deregulation would stimulate demand and increase inflation in the near term. The fund said that while deregulation would boost the U.S. economy over five years by stimulating innovation and removing red tape, dangers of going too far still existed.

“Higher inflation would prevent the Federal Reserve from cutting interest rates and could even require rate hikes that would in turn strengthen the dollar and widen US external deficits”.

-Pierre-Olivier Gourinchas, chief economist at IMF

IMF forecasts also highlighted the ‘transatlantic divergence’ between the U.S. and big Eurozone economies like Germany which was expected to grow by just 0.3% this year. The wider Eurozone would grow by 1%, significantly slower than the UK’s 1.6% forecast.

IMF forecasts surge in China’s economy, debt trap risks loom large

Gourinchas emphasized that the Chinese economy was exposed to a ‘debt-deflation-stagnation’ trap if Beijing’s fiscal measures failed to boost demand. He pointed out a scenario where falling prices would boost the real value of debt and undermine activity. China’s economy was expected to grow by 4.6% in 2025, faster than the IMF’s previous expectations. 

The IMF said that the global economy was now expected to expand by 3.3% in 2025 and 2026, slightly higher than October’s estimates but well below its 3.7% historical growth. Headline inflation was also expected to reduce from 4.2% in 2025 to 3.5% in 2026. The fund, however, noted that the taming inflation could be disrupted by the risks of policy generation. 

According to the IMF, the risk of renewed inflationary pressures could prompt raising policy rates and intensifying monetary policy divergence by the central bank. Fiscal, financial, and external risks could be worsened if interest rates remained higher for longer than projected.

Kristalina Georgieva, managing director at the IMF, highlighted the ripple effects of Trump’s uncertain trade policies. She stated that the uncertainty about the incoming administration’s trade policies were adding to worldwide economic headwinds and were actually expressed globally through higher long-term interest rates.

Georgieva noted that despite a decrease in short-term rates, the surge in long-term rates marked a very unusual economic phenomenon. The current scenario, however, painted a picture of economic anxiety where markets and investors braced for potential new trade barriers disruptions.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

#news_update Last night was a truly “fiery” night for the entire crypto market. The constant news from the FED made many people lose their accounts, especially those who played long positions with high leverage without setting stop losses. Leveraged orders worth $300 million were liquidated in just the last hour - a very bad number!
Key news from the Fed last night:
Fed Chairman Jerome Powell has said the Fed is “not allowed to hold Bitcoin” and that whether the U.S. government should hold Bitcoin is up to Congress to decide. But the Fed has no intention of holding any Bitcoin.

Caroline Crenshaw is out. The SEC commissioner, famous for her anti-crypto stance, won’t be getting a second term. The Senate Banking Committee abruptly canceled tomorrow’s scheduled renomination vote. Just like that, one of crypto’s most vocal adversaries is off the field.

Crenshaw’s four-year run in the U.S. Securities and Exchange Commission (SEC) left a trail of tension, frustration, and courtroom battles. Appointed in 2020 under President Donald Trump, she quickly turned into a regulatory thorn for the crypto industry.

Her opposition to Bitcoin ETFs earlier this year might’ve been the final straw. Crenshaw often said that crypto markets were “petri dishes of fraud.” Critics argue she spent her entire term proving that theory instead of helping regulate the space constructively.

Coinbase CEO Brian Armstrong wasn’t subtle about it, saying she was “worse than Gensler.” He added that: “Her policies hurt more than they helped.”

Crenshaw’s crypto blockade

Caroline Crenshaw made headlines in January when she voted against approving spot Bitcoin ETFs. It was a critical moment for crypto. Years of effort by major firms, court battles, and rising public demand pushed Bitcoin ETFs to the center of the financial world. Crenshaw, though, was unmoved.

She voted no, citing fears of market manipulation and inadequate investor protections. She wasn’t alone, but the industry wasn’t having it. A federal court had just ruled that previous SEC rejections were “arbitrary and capricious,” a decision that made Crenshaw’s refusal look like stubbornness at best — hostility at worst.

Ripple Chief Legal Officer Stuart Alderoty was among the first to speak out. “Her position was indefensible after the courts ruled against them,” he said.

Crenshaw once described crypto markets as dangerous playgrounds for fraudsters and manipulators. “Investor safety has to come first,” she said repeatedly.

Crypto’s war with the SEC loses two key players

Under Crenshaw’s watch, SEC enforcement actions ramped up, targeting platforms like Coinbase and Binance for alleged securities violations. The industry’s complaints were loud: regulations were unclear, inconsistent, and overly punitive.

Crenshaw disagreed. She argued crypto firms were ignoring laws that had existed for decades. “The rules are clear,” she said in one meeting, “crypto needs to follow them.”

Leaders like Tyler Winklevoss, CEO of Gemini, accused the SEC of losing credibility under its Democratic leadership. He pointed to Crenshaw’s role in escalating the regulatory war. “The SEC has become hostile, and it’s holding back innovation,” he said.

To many, her policies raised costs and uncertainty without solving the problems she claimed to fight. Compliance requirements tightened. Lawsuits mounted. And innovation? It either slowed or moved offshore.

The Senate’s decision to cancel her renomination suggests those complaints finally resonated. With crypto becoming a bigger political issue, it’s clear Crenshaw’s hardline approach didn’t age well in Washington.

SEC Chair Gary Gensler, her closest ally in cracking down on crypto, recently announced he’s stepping down on January 20, 2025 — the same day President-elect Donald Trump takes office. Gensler’s resignation aligns with Trump’s goal to overhaul financial regulators and reverse “overreach.”

For crypto, it’s a rare win in a regulatory battle that’s felt one-sided for years. The timing is no coincidence. Industry analysts believe Trump’s incoming administration will take a softer approach to crypto. Trump himself has criticized the SEC’s aggressive enforcement strategy, calling it bad for business and innovation.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

🥶🥶🥶 It's the end. Now, the French government is working on a new tax on cryptos to extract the last euros from its population who can no longer even heat their homes.
International investors have destroyed the assets, France will not recover.
President Macron has authorized Ukraine to go to war against the Russian giant, which has just tested an intercontinental nuclear weapon.
The wheels are ready for a nuclearization of France or there will be nothing left. Economically France is dead, deserted by companies with progress, relocated to China. There remains only a population of overexploited workers and gangsters subsidized by French taxes, the Clock of the end of time is in motion.

SEC persists with "digital asset securities" claims, appealing Ripple court ruling.

XRP price surges past $1, with analysts eyeing a potential rally to $2.

Ripple lawsuit could settle for $125M, with calls for clarity and Gensler's resignation.

The U.S. Securities and Exchange Commission (SEC) has signaled its intent to persist with claims involving “digital asset securities,” particularly targeting XRP, despite a prior court ruling rejecting such a categorization. 

This development has raised new questions about the trajectory of the high-profile Ripple lawsuit, which has dragged on for years, and its impact on the cryptocurrency market. 

Meanwhile, XRP has witnessed a surge in its value, crossing the $1 threshold, and analysts are projecting a potential rally to $2, fueled by speculation of an end to the legal battle and shifts in regulatory leadership.

During a recent speech at the Practising Law Institute’s (PLI) 56th Annual Institute, SEC Chair Gary Gensler reiterated that Bitcoin is not a security but remained silent on XRP, ether, and stablecoins. 

Gensler’s remarks highlighted the SEC’s focus on targeting the broader digital asset market, stating, “Aside from Bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion.” Legal experts have criticized the SEC’s persistence in using terms like “digital asset securities,” which were recently ruled inappropriate in connection with XRP.

https://twitter.com/MetaLawMan/status/1859326108287512930

Despite a court judgment that XRP’s sales on exchanges do not constitute securities transactions, the SEC has appealed portions of the ruling related to XRP sales by Ripple, its executives, and its distribution to employees.

Crypto legal expert James Murphy noted that the SEC’s stance disregards the court’s findings, signaling a potential escalation in the dispute.

The crypto community has increasingly called for the lawsuit's dismissal and SEC Chair Gary Gensler’s resignation. Ripple CEO Brad Garlinghouse has expressed optimism about resolving the case, anticipating a potential conclusion following upcoming political shifts. 

Ripple CTO David Schwartz clarified that Ripple’s obligations are to its shareholders, not XRP holders, emphasizing that XRP’s price is independent of Ripple’s efforts.

Reports suggest that a $125 million settlement is on the horizon. Observers note that such a resolution would bring much-needed clarity to Ripple’s operations and the broader digital asset space.