Treasury Intervention Sparks Gold and Bitcoin Surge Amid AI Boom
The US Treasury Secretary intervened in bond and forex markets to prevent a market collapse, revealing their bottom line for supporting the market. This move has led to a surge in gold, Bitcoin, and other assets as investors seek safe havens.
The AI narrative is shifting rapidly from its 'construction phase' to 'application phase', with companies like Nvidia seeing astronomical revenue growth. This shift is driven by innovative applications of AI, such as personalized vaccines and the standardization of computing power specifications.
Mark Wilson, a Goldman Sachs partner, notes that Bessent's intervention marks an important policy turning point, conveying a central message: policy coordination between the Fed and the Treasury is now more explicit, and authorities will use every means to underpin nominal growth.