Tianqiao Capital: Optimistic about the Trump team's relaxation of regulation, intervention in Fed operations may threaten the US dollar's status.

Skybridge Capital founder Anthony Scaramucci recently stated in an interview that he is in contact with the Trump team. Scaramucci revealed that preparations for Trump's return to the White House are progressing smoothly, with the Republican Party united in supporting Trump this time. Compared to 2016, Trump's support base is more solid this time, and it is expected that the operation of the new government in the future will be smoother.

Scaramucci further stated that the Trump team has prepared a number of executive orders and plans to take effect immediately on January 20, covering important issues such as immigration, cryptocurrency, and energy policies.

Trump's New Wave of Executive Orders Focus on Immigration, Cryptocurrency, and Energy Policies

Scaramucci pointed out that in Trump's first week in office, several executive orders are expected to be issued, focusing on strengthening border control with Mexico, promoting regulatory reforms for cryptocurrency, and supporting energy exploration. Scaramucci mentioned that Trump's supporters have differing views on the "birthright citizenship" policy, expressing concerns that policies targeting children of illegal immigrants may lead to "social conflicts." Regarding economic policies, Scaramucci emphasized that investors hope the Trump administration can play a role in "maintaining economic stability."

High Expectations for Trump's Treasury Team Appointments, Market Anticipates Loosening Financial Regulations

Regarding the appointment of the new Treasury Secretary, Scaramucci suggested that Trump may appoint influential figures from the financial sector, such as Howard Lutnick, CEO of Cantor Fitzgerald, one of Wall Street's largest bond brokerage firms. The market generally expects the Trump administration to reduce or loosen financial regulations to enhance the competitiveness of U.S. banks in the global market.

Scaramucci also praised former Treasury Secretary Steven Mnuchin's steady performance. He mentioned that if Trump gets along well with the new Treasury Secretary, he may indeed grant them more autonomy.

Previously Pressured Powell and the Fed, Trump's Intervention May Threaten the Dollar's Status

Trump has expressed his desire for the Federal Reserve (Fed) to maintain low interest rates and publicly pressured Fed Chairman Powell. However, Powell has stated that he will not resign, and legally, the President does not have the authority to dismiss him. Scaramucci stated that while Trump may continue to pressure the Fed, the market generally believes that the Fed's decision-making independence will not be affected. However, if Trump forcefully intervenes, it could pose a threat to the international status of the dollar and market stability.

Potential Regulatory Changes Under Trump's Administration, Scaramucci Criticizes SEC Enforcement Issues

Scaramucci pointed out that with Trump's election victory driving Bitcoin prices to new highs, the Trump team may change the existing "enforcement-first" approach. The market is expected to see a more reasonable regulatory framework to allow cryptocurrency market prices to reflect their true value. Scaramucci also criticized the Securities and Exchange Commission (SEC) for its tough enforcement of cryptocurrency and believed that such policies were not conducive to the long-term development of the industry.

Optimism Towards Trump's Return to Politics, but Radical Statements Could Significantly Impact the Market

Scaramucci recalled how Trump's past remarks during his tenure often affected the market, especially strong statements regarding trade, regulation, and foreign policies. However, Scaramucci remains optimistic about Trump's return to office and hopes that the policies he implements can promote stable economic growth and improve the living standards of the middle and lower-income groups. Nevertheless, Scaramucci also warned that if Trump reverts to his radical speaking style, the market may once again experience significant volatility.

The Fed cuts rates by one notch, Powell vows not to resign, Bitcoin hits new highs again.