Hello there.
It’ll be kinda sad to see Powell go, huh? Well, dollars to donuts, this new guy will… Actually, wait, how much does a donut cost?
💵 What’s The Worth of One Washington?
⚡️ Powell’s Replacement Just Dropped
🛑 The Fed is Quite Content With Inflation, Actually
₿ Finally, Crypto Made it Past the Committee
🏛 Political Portfolio Spotlight: Rep. Nancy Pelosi (D-CA)
$15+ per dozen at Dunkin’, in case you were wondering. Now let’s dig in.
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💵 The Dollar's Four-Year Low
The US dollar just crashed to a four-year low, and when reporters asked Trump if he was worried, he basically said "nope, I'm good with it." The greenback dropped another 1.4% immediately after his comments. Cue the collective panic from currency traders everywhere. The dollar’s weakness was a large reason why gold and silver were doing so well. Were.
But THEN Trump announced his new Fed Chair pick the next day, and markets lost it. It’s Kevin Warsh, who’s a known supporter of Fed independence (and who doesn’t like injecting money into the economy through the Fed either). Which means we probably won’t see many rate cuts, and the US Dollar will likely become stronger (it’s already worth 8% more than it was earlier last week).
Gold and silver lost it over the news. Gold dropped 20% from $5,600 to almost $4,500 over four days, and silver fell 39% from around $121 down to $74. Commodities traders are straight-up not having a good time with Warsh, but maybe that’s ok, seeing as gold was up 188% since 2022 and silver was up 717% since 2020 (before the crash last week).
❓ What do you think?
Will Kevin Warsh do what Trump wants (cut rates) or no?
⚡️ The Policy Pulse
The US trade deficit widened by the most in nearly 34 years in November, reflecting strong import demand and ongoing global trade imbalances.
Apartment rents dropped to their lowest level in four years, with the national median hitting $1,353 in January as vacancies hit a record high of 7.3%.
China now threatens US dominance in drug development, as the Trump administration overhauls FDA and NIH research priorities.
Major US banks will match the government's $1,000 contribution to Trump Accounts, a pilot savings program for newborns.
🛑 The Fed Just Put It in Park
The Federal Reserve held rates steady at 3.5% to 3.75% on Wednesday, and Chair Jerome Powell basically told everyone to calm down. Two committee members dissented, pushing for a cut, but Powell said it's "hard to look at the data and say that policy is significantly restrictive right now." Translation: the economy is fine, you're all overreacting, and rate cuts can wait.
Powell also went full constitutional scholar, defending central bank independence after weeks of pressure from the White House. Trump has been vocal about wanting lower rates and picking a new Fed chair, and the Justice Department even started investigating Powell over the Federal Reserve’s new building renovations. Powell showed up to oral arguments at the Supreme Court for what he called "perhaps the most important legal case in the Fed's 113-year history." If that doesn't scream "back off," nothing will.
For your portfolio, this might mean cash is a decent play at the moment. Money market funds are yielding around 3.5%, and CDs are sitting at 3.25% to 4%. JP Morgan strategists expect just one more rate cut in 2026, likely in June. So if you've been sitting on the sidelines waiting for borrowing costs to drop, you're going to be waiting a while. Powell made it clear: the Fed is data-dependent, meeting-by-meeting, and nobody is in a rush.
From last week’s issue:
₿ The Coin Toss
A crypto market structure bill advanced in the Senate Agriculture Committee on Thursday in a party-line vote.
Citi said the CLARITY Act remains the key catalyst for legitimizing digital assets in the US, though disputes risk delaying final passage beyond 2026.
Binance will convert its $1 billion user protection fund from stablecoins to Bitcoin over the next 30 days, with a $800 million replenishment hold.
Standard Chartered warned that US banks may lose $500 billion in deposits to stablecoins by 2028 as payment tokens continue gaining traction.
Pro-bitcoin El Salvador President Nayib Bukele is buying gold, hedging the country's 7,547 BTC holdings.
😆 Meme of the Week
🎙 Tell Us Your Thoughts
⭐️ What did you think of today's edition?
🏛 Political Portfolio Spotlight
Elected officials have had a tremendous amount of success in the market recently.
We want to keep you updated on what they’re trading and when so you can leverage that intel as you plan out your own portfolio.
Data provided by AltIndex.
Remember to always DYOR.
Rep. Nancy Pelosi
(D-CA)
💲 Top Trades This Week:
🔍 Analysis:
Pelosi’s recent activity reflects active portfolio rebalancing rather than a clean directional pivot. The defining feature here is rolling exposure forward using options while trimming large legacy stock positions.
On the sell side, Apple stands out. Multiple large-scale sales totaling tens of millions signal a meaningful reduction in single-name concentration after years of dominance. Similar trimming across Disney, PayPal, Amazon, Alphabet, and NVIDIA suggests systematic profit-taking in mega-cap growth rather than loss of conviction. These are reductions in size, not exits from themes.
The buy activity tells the real story. Pelosi consistently re-enters the same names (AMZN, GOOGL, NVDA) via call options and selective stock purchases. This keeps upside exposure intact while reducing capital at risk, a classic volatility-aware positioning strategy.
Overall: this portfolio is not de-risking from tech, just refining how risk is expressed. Pelosi is rotating from outright equity concentration into option-levered exposure and diversified adjacencies, maintaining bullish long-term views on AI, platforms, and infrastructure while tightening risk control after outsized gains.
Rep. Nancy Pelosi (D-CA)
That’s all for today. Write us and let us know your thoughts on the market, the newsletter, or the weather—we’d just love to hear from you.
Till next time,
— Brandon and Blake with Invested Inc.
Disclosures:
The information provided in Finance Wrapped is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Finance Wrapped is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable. Past performance does not guarantee future results.
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