US New Year Tax Cuts and Housing Reforms: New Variables in Household Purchasing Power and Asset Allocation

【CryptoWorld】The economic policy trends for the new year in the United States are worth paying attention to. According to the latest policy signals, the US plans to introduce the largest tax cut scheme in history, allowing ordinary households to save an average of $11,000 to $20,000 annually. This will have a significant impact on consumption capacity and capital flows.

At the same time, the new government is also preparing for a historic housing reform plan. Interestingly, policymakers believe that one of the core driving forces behind recent housing price increases is the large-scale immigration wave. The influx of new residents has led to a surge in housing demand, combined with the previous government’s taxpayer subsidy policies, further driving up rental costs and property prices, which puts pressure on the living costs of ordinary families.

From a macroeconomic perspective, tax cuts release household purchasing power, but high housing prices squeeze this benefit, leading to a rebalancing of the entire economy. Such policy combinations often change the direction of capital allocation—funds may shift towards consumption, real estate, and financial assets. For investors concerned with the macro environment, similar policy shifts often also influence valuation expectations of risk assets.