Newman: Why Trump is killing the penny and ransacking the government

Published On Feb 10, 2025, 3:16 PM

Donald Trump is focusing on significant spending cuts to finance tax cuts planned for his administration. One key action includes ending the production of the penny, which he claims is a waste of taxpayer money. Overall, Trump’s proposed spending reductions target various sectors, including foreign aid and healthcare, as he looks to extend his previous tax cuts that are set to expire soon. With national debt surging, he faces greater market scrutiny and may need to navigate significant political hurdles to enact these budget cuts.

Stock Forecasts

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Negative

With Trump advocating for major spending cuts to finance tax cuts, this could lead to increased volatility in the markets as investors react to potential government restructuring and changing policies. Investors should keep an eye on sectors directly impacted by budget cuts as they may face negative implications in the short term.

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