deficit

Cointelegraph posted on the X platform that Coinbase CEO Brian Armstrong stated that Bitcoin is favorable against the US dollar and pointed out that Bitcoin can act as a counterbalance to high inflation and deficit spending.

ChainCatcher news, Tesla CEO Elon Musk stated in response to a netizen's question that his change of stance is primarily due to the Trump administration expanding the fiscal deficit from $2 trillion during the Biden era to $2.5 trillion. Musk claimed this move "will lead to national bankruptcy."Previous news, Musk announced the establishment of the "American Party," which will break the existing political landscape.

ChainCatcher news, according to a warning from the International Monetary Fund (IMF), the upcoming Trump tax bill may complicate the task of reducing fiscal deficits and debt burdens in the coming years.IMF spokesperson Julie Kozack stated that the U.S. needs to gradually reduce public borrowing in order to significantly cut the debt-to-GDP ratio, which is an important measure of debt sustainability.Kozack said, "The bill seems to contradict the goal of mid-term debt reduction." The IMF typically defines "mid-term" as three to five years. According to data from the Congressional Budget Office, the bill will increase the deficit by $3.3 trillion. (Jin Shi)

ChainCatcher news, after the U.S. Senate passed President Trump's multi-trillion dollar tax bill, investors are concerned about the U.S. fiscal situation, and gold continues to rise. Gold prices remain around $3,340 per ounce, having increased by 2% over the previous two trading days.The latest version of the president's signed bill—expected to expand the deficit by $3.3 trillion over the next 10 years—is currently awaiting approval in the House of Representatives. If passed, this could enhance gold's appeal as a safe haven, as investors reconsider their allocations to U.S. assets due to concerns over Trump's destructive trade and economic agenda. The continued weakness of the dollar—currently at its lowest level since 2022—continues to support gold prices, offsetting the pressure from rising U.S. Treasury yields following a report on Tuesday showing an increase in job vacancies.

ChainCatcher news, according to Jinshi reports, U.S. President Trump stated that the "Great and Beautiful Act" reduces the deficit and national debt while unleashing economic growth.

ChainCatcher news, according to Jinshi reports, U.S. Treasury Secretary Besant stated that we are moving forward with the vote on the tax bill (the "Beautiful Big Bill") today. This is an agreement that benefits the working class. We hope to expand the Medicaid program to benefit mothers, children, and those in need. We aim to restore the Medicaid program to pre-pandemic levels.Besant also stated that he disagrees with Musk's claim that the bill will increase the deficit. If the tax bill passes, we may see a surplus.

ChainCatcher news, after the GENIUS Act was passed in the U.S. Senate this week, stablecoins could become an important source of funding for the U.S. government, and may even serve as a new tool for U.S. Treasury Secretary Yellen to address the country's deficit. Yellen has previously praised the GENIUS Act and stated that a regulated and evolving stablecoin market could create new buyers for U.S. government debt, boosting private sector demand for U.S. Treasury bonds. In May, Yellen had indicated to the U.S. House Financial Services Committee that some speculate the stablecoin market's demand for U.S. government securities could reach as high as $2 trillion in the coming years.However, analysts believe that the stablecoin industry is unlikely to fully resolve the U.S. government's debt financing issues and may introduce additional risks, as the extra demand for stablecoins will take time to develop, while the U.S. Treasury needs to issue a large amount of debt securities within a year. If problems arise that prevent the Federal Reserve from lowering interest rates, the U.S. deficit could spiral out of control.

ChainCatcher news, according to Jinshi reports, Goldman Sachs pointed out that Trump's spending plan cannot prevent U.S. national debt from rising to "unsustainable" levels, with current debt levels only second to those during World War II. Next year, the U.S. will need to pay $1 trillion in interest on $36 trillion in national debt, an amount exceeding the total of Medicare and defense spending. Goldman Sachs economists warned that if U.S. lawmakers delay addressing the deficit issue, future measures may require historically rare fiscal tightening to avoid a crisis. "Large-scale fiscal consolidation could lead to a decline in GDP, which in turn may not reduce the debt-to-GDP ratio. More dangerously, there may be a choice to print large amounts of money to repay debt—historical lessons from Germany's Weimar Republic in the 1920s indicate that such actions would trigger hyperinflation and social unrest."The nonpartisan Congressional Budget Office estimates that the Republican spending bill will increase the deficit by $2.8 trillion over the next decade. The White House and some Republican lawmakers argue that the forecast should not include the cost of extending Trump's 2017 tax cuts, which are set to expire this year if not extended.

ChainCatcher news, citing the Wall Street Journal, reported that the U.S. Department of Commerce stated on Thursday that the U.S. trade deficit in April sharply decreased by 55.5% to $61.6 billion. U.S. imports fell by 16% from March to $351 billion in April, while exports rose by 3% to $289.4 billion. This resulted in a trade deficit of $61.6 billion, the smallest since September 2023. In April, imports of consumer goods decreased by $33 billion, with a significant drop in pharmaceutical imports. Auto imports decreased by $6.4 billion.The data showed a significant initial effect from the White House's substantial tariff increase in early April, but the future direction remains unclear.

ChainCatcher News: U.S. Senator Mike Lee announced that he is drafting an amendment that would disqualify members of Congress from running for re-election if the deficit exceeds 3% of GDP. Elon Musk expressed his support for this earlier today.

ChainCatcher news, according to Jin10 data reports, the U.S. Department of Commerce stated on Tuesday that the international trade deficit in March, including goods and services, widened by 14%, reaching a record $140.5 billion after seasonal adjustments, due to businesses rushing to import foreign products before tariffs were imposed by the White House.Economists surveyed by The Wall Street Journal had previously expected the U.S. trade deficit to widen from $127 billion in February to $136 billion.

ChainCatcher news, according to Jin10, the U.S. trade balance for January recorded -131.4 billion dollars, the largest trade deficit on record.

ChainCatcher news, Coinbase CEO Brian Armstrong stated at the 2025 Davos Forum in Switzerland: "Bitcoin can effectively counterbalance deficit spending and inflation, as people will turn to Bitcoin for safety once the situation spirals out of control."

ChainCatcher news, according to Jinshi reports, Societe Generale predicts that by the end of 2025, the 10-year U.S. Treasury yield will rise to 4.5%, while the 2-year U.S. Treasury yield will fall to 3.5%.The reason is that the Federal Reserve's continued interest rate cuts will lower short-term rates, but will also stimulate the economy and increase the fiscal deficit, leading to increased demand for long-term government bonds, which will cause long-term yields to rise.In addition, Trump's tariff plan may raise inflation expectations, and the U.S. government is expected to increase the issuance of government bonds to address the fiscal deficit, both of which will push up yields.

ChainCatcher news, according to Jinshi reports, "The decision to cut interest rates is an acknowledgment of the growing confidence that the inflation rate is likely to reach the Federal Reserve's 2% target—this confidence is partly based on signs that the labor market and product market have been tending toward balance in recent months," said Kansas City Fed President George in remarks prepared for a speech to the Omaha Chamber of Commerce.He stated that while the progress toward returning to the 2% target means that now is an appropriate time to cut rates, "how much further rates will decline or what they will ultimately settle at remains to be seen." On the current issue of federal government spending, George indicated that because the Federal Reserve will fulfill its responsibility to keep inflation at the established 2% target, large fiscal deficits will not trigger inflation.However, this may mean that "interest rates will remain elevated for an extended period," George said, which is why the Federal Reserve must maintain its independence when formulating monetary policy.

ChainCatcher news, according to a post by Cointelegraph on the X platform, former JPMorgan Chief Equity Strategist and co-founder and research head of FundStrat Global Advisors Tom Lee stated in an interview with CNBC that Bitcoin could become a "treasury reserve asset" to help offset the U.S. deficit.Additionally, Bitcoin still has the potential to reach $100,000 this year, with significant upside potential.

ChainCatcher News, the Federal Reserve Bank of Minneapolis recently released a new research report expressing concerns about the impact of Bitcoin on government fiscal policy, suggesting that it may need to be taxed or legally prohibited to help the government manage deficits.The paper argues that Bitcoin complicates efforts to maintain a permanent government deficit, especially in an economy that relies on nominal debt. It points out that Bitcoin creates what is known as a "balanced budget trap," forcing the government to balance its budget.This paper has faced sharp criticism from Bitcoin supporters. Matthew Sigel, head of digital asset research at VanEck, stated that the Federal Reserve Bank of Minneapolis now aligns with the European Central Bank's (ECB) critical stance on Bitcoin.He noted that the document envisions implementing legal prohibitions and additional taxes on Bitcoin to ensure that government debt remains the only "risk-free" security.Dan McArdle, co-founder of Messari, specifically pointed out a paper published by the bank in 1996 titled "Money is Memory," which described money as a fixed supply object that does not enter production, a concept closely related to the design of Bitcoin.