Trump wants to end penny production; will it affect consumers?
Published On Feb 11, 2025, 7:03 PM
Former President Donald Trump has instructed the U.S. Treasury to stop producing new pennies, claiming the cost of minting them exceeds their value. While this move is primarily viewed as a measure for efficiency, industry experts predict that its impact on consumers will be minimal due to the increasing use of digital payments. Countries like Canada have successfully phased out their pennies without rising inflation. However, some critics argue that this could lead to higher production costs for other coins like nickels, potentially affecting consumers who still use cash.
Stock Forecasts
V
Positive
Trump's initiative to phase out the penny signals a broader trend of reducing low-denomination coin production, which might positively affect companies involved in digital payment solutions as cash usage declines.
PAYX
Negative
The criticism from groups like Americans for Common Cents suggests that there might be unintended negative economic consequences, particularly for businesses reliant on cash transactions, leading to potential volatility in related sectors.
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