A recent major news has caused a stir in the market—Trump has announced that the new Federal Reserve Chair will implement significant rate cuts. Although this hasn't been fully confirmed yet, financial markets are already beginning to price in this expectation. Let's see how various asset classes might move:

**The US Dollar Faces Pressure**

Interest rates are the core pillar supporting the US dollar. Once rate cuts are imminent, the attractiveness of dollar-denominated assets will significantly diminish. A large amount of capital may seek to flow into other high-yield currencies or assets, likely causing the dollar index to weaken. This means currency exchange will become cheaper, and the cost of international shopping will decrease.

**Gold Gains Momentum**

Gold does not generate interest, which is its characteristic. When global interest rates decline, the opportunity cost of holding gold naturally decreases. More importantly, if the dollar depreciates, gold prices settled in USD will tend to rise. Considering that gold has already been hovering near historical highs, this expectation could push it even higher. Investors looking to allocate to gold should pay close attention to the timing.

**Tech and Growth Stocks to Rebound**

Rate cuts directly reduce corporate financing costs. For tech companies and growth-oriented enterprises that require substantial capital investment, this is a significant positive. Meanwhile, a loose liquidity environment will increase idle funds in the market, and investors' risk appetite will rise, leading to more capital flowing into the stock market for gains. Overall, the US stock market is likely to experience a rally.

**US Treasury Yields Will Drop**

The logic in the bond market differs from that of the stock market—prices and yields move inversely. With rate cut expectations, the high-yield US Treasuries currently held will become more valuable, causing their prices to rise, while yields on newly issued bonds will decline. This effect will be most evident in short-term US Treasuries.

**Cryptocurrencies Follow the Trend**

Cryptocurrencies like Bitcoin and Ethereum tend to ride the wave of liquidity easing. Driven by rate cut expectations, speculative capital may rapidly flow into the crypto market, and many coins could see short-term gains. However, a word of caution—rallies driven solely by liquidity are often fragile. If subsequent rate cut policies do not materialize or fall short of expectations, a quick correction could follow.

**Reality Check**

It should be noted that these reactions are mainly market "knee-jerk" responses. The actual outcome depends on several key factors: the specific identity and stance of the new Fed Chair, the trajectory of US inflation data, and the performance of the labor market. If policy expectations are not realized or the rate cuts are much smaller than anticipated, the previously rising assets may face downward pressure, and investors should be psychologically prepared.