Trump takes aim at 'wasteful' government spending by ordering end to penny production
Published On Feb 10, 2025, 9:29 AM
President Donald Trump has ordered a halt to the production of new pennies, citing the expense of minting them, which costs more than their face value. Trump's decision aims to reduce wasteful government spending, but it's uncertain whether he has the authority to make this change without Congress. Analysts believe this could lead to a shortage of coins, potentially increasing the costs for merchants and banks, and might accelerate the shift towards electronic payments. This situation could benefit companies involved in electronic payment processing.
Stock Forecasts
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Positive
The halt in penny production may lead to a higher adoption of electronic payment methods, benefiting companies in this space. Payment processing giants like Visa and Mastercard are likely to see increased usage in transactions. If the move shifts consumer behavior towards digital payments, it could positively impact these companies' stock performance.
MA
Positive
As small denominations like the penny become less available, there could be an increased demand for alternative transaction methods and payment solutions, enhancing the growth prospects for companies that facilitate electronic payments.
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