United States President Donald Trump announced on Sunday that most Americans will receive a $2,000 “dividend” from the tariff revenue and criticized the opposition to his sweeping tariff policies.
“A dividend of at least $2000 a person, not including high-income people, will be paid to everyone,” Trump said on Truth Social.
The US Supreme Court is currently hearing arguments about the legality of the tariffs, with the overwhelming majority of prediction market traders betting against a court approval.
Kalshi traders place the odds of the Supreme Court approving the policy at just 23%, while Polymarket traders have the odds at 21%. Trump asked:
“The president of the United States is allowed, and fully approved by Congress, to stop all trade with a foreign country, which is far more onerous than a tariff, and license a foreign country, but is not allowed to put a simple tariff on a foreign country, even for purposes of national security?”
Investors and market analysts celebrated the announcement as economic stimulus that will boost cryptocurrency and other asset prices as portions of the stimulus flow into the markets, but also warned of the long-term negative effects of the proposed dividend.
Related: Bitcoin faces ‘insane’ sell wall above $105K as stocks eye tariff ruling
The proposed economic stimulus will boost asset markets, but at a steep cost
Investment analysts at The Kobeissi Letter forecast that about 85% of US adults should receive the $2,000 stimulus checks, based on distribution data from the economic stimulus checks during the COVID era.
While a portion of the stimulus will flow into markets and raise asset prices, Kobeissi Letter warned that the ultimate long-term effect of any economic stimulus will be fiat currency inflation and the loss of purchasing power.
“If you don’t put the $2,000 in assets, it is going to be inflated away or just service some interest on debt and sent to banks,” Bitcoin analyst, author, and advocate Simon Dixon said.
“Stocks and Bitcoin only know to go higher in response to stimulus,” investor and market analyst Anthony Pompliano said in response to Trump’s announcement.
Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame
-1024x683.jpg "Florida Roads Become a Battleground for Illegal Immigration")
