The Week in Review: January 22, 2021

New Money Traders | January 22, 2021

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President Biden Inaugurated as the 46th President of the United States 

The United States ushered in a new President on Wednesday, and president Biden got right to work signing Executive Orders and Actions. The aim of these was to eliminate or reverse similar orders of the previous administration. This is a common practice when a new administration. Initially markets welcomed President Biden by surging to all time highs. However, as news that any more Covid stimulus could be delayed until March the markets fell today. 

Former Fed Chair Janet Yellen to be Treasury Secretary 

Yellen passed through the Senate Finance Committee by unanimous vote and a vote by the full Senate is expected later today.  Yellen, who served as the chair of the Federal Reserve from 2014-2018, is expected to be confirmed without issue. She is tapped with getting President Biden’s economic agenda and the already proposed $1.9 trillion stimulus package through a deeply divided political landscape. Yellen has stated that he wants to work with other nations on a corporate tax policy. President Biden opposed the tax cuts passed during the Trump administration that lowered the corporate tax rate from 35% to 21%. Given her past experience running the Fed, expect the Biden administration to work much more closely with the central bank that President Trump’s often tepid relationship with current Fed Chair Jerome Powell. 

Bitcoin Sell Off 

Bitcoin has been on a wild ride over the past several weeks. The largest and most widely recognized cryptocurrency saw its value soar to over $40,000 only to fall, briefly, below $30,000. Bitcoin has fallen roughly 12% this week; at the time of this publication Bitcoin (BTC) is trading about $32,000. It is unclear how the new Biden administration will handle cryptocurrency, however soon to be minted Treasury Secretary is a known crypto skeptic

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