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UBS strategists predict minimal change in the U.S. fiscal deficit under a second Trump administration, despite proposed tax cuts and spending programs. With the deficit exceeding 7.5% of GDP and a debt-to-GDP ratio over 120%, significant fiscal constraints are anticipated, including potential entitlement reforms and tax increases to stabilize debt levels. The challenges of high interest rates and narrow congressional majorities may further complicate expansive fiscal policies.
UBS strategists predict minimal change in the U.S. fiscal deficit under a second Trump administration, despite proposed tax cuts and spending programs. With the deficit exceeding 7.5% of GDP and a debt-to-GDP ratio over 120%, significant fiscal constraints are expected, limiting expansive policies. Achieving long-term debt sustainability will likely require structural reforms, higher growth, and potential tax increases.
UBS strategists predict minimal change in the U.S. fiscal deficit under a second Trump administration, despite proposed tax cuts and spending programs. With the deficit exceeding 7.5% of GDP and a debt-to-GDP ratio over 120%, significant fiscal constraints are anticipated, including potential entitlement reforms and tax increases to stabilize the economy. The challenges of high interest rates and narrow congressional majorities may further complicate expansive fiscal policies.
Bitcoin has experienced a rally following the US election, supported by oblique trends, but faces potential risks of a breakout. The Federal Reserve's recent projections, indicating higher inflation expectations and fewer rate cuts for 2025, have led to a rise in US yields and a stronger dollar, which in turn pressured both gold and Bitcoin.
Dogecoin has faced a setback amid a broader crypto market crash, with $29 million in DOGE disappearing. Meanwhile, Cardano (ADA) is showing signs of recovery after a sharp decline, currently trading at $0.9812, with analysts optimistic about a potential rebound above $1. The increase in market volume by over 30% suggests strong investor confidence, and experts believe ADA may have found a new support level around $0.90. Innovations within the Cardano ecosystem, hinted at by founder Charles Hoskinson, could further enhance its market position.
US stocks rebounded on Thursday after a sell-off triggered by a hawkish Federal Reserve outlook on interest rates. The Dow Jones Industrial Average rose over 1%, breaking a 10-session losing streak, while the S&P 500 and Nasdaq also gained more than 1%. Economic data showed third-quarter GDP growth at an annualized rate of 3.1% and a decrease in weekly unemployment claims to 220,000.
Bitcoin experienced an 8% drop from its all-time high of $108,300, following a Federal Reserve rate cut announcement. Despite this decline, the cryptocurrency held above the critical $98,000 liquidity level, indicating no significant panic selling and suggesting a potential shakeout rather than a major correction.Analysts are closely monitoring key resistance at $103,600 and support at $100,000, as these levels will determine Bitcoin's near-term trajectory. The market sentiment remains cautiously optimistic, with the potential for renewed momentum if Bitcoin can break through resistance.
Bitcoin recently reached a new all-time high of over $108K but faced a pullback following a Federal Reserve rate cut, increasing the risk of an extended retracement. The price is currently consolidating around the $100K support level, with signs of weakening bullish momentum and potential selling pressure from long-term holders. If a deeper correction occurs, support may be found within the 0.5–0.618 Fibonacci retracement levels, which could set the stage for another rally.
South Korea has delayed the implementation of a crypto tax until 2027, reaffirming its pro-crypto stance amid political uncertainty following President Yoon Suk-yeol's impeachment. The government aims to develop a comprehensive regulatory framework while monitoring global trends, particularly U.S. policies under President-elect Donald Trump. Despite the turmoil, trading activity remains strong on major exchanges as investors seek cryptocurrencies as a hedge against the weakening Korean Won.
Wall Street experienced a significant decline on December 19, 2024, with the Dow Jones Industrial Average dropping 1,123.03 points, or 2.6%, marking its longest losing streak since 1974. The Nasdaq Composite and S&P 500 also fell sharply by 3.6% and 3%, respectively, as the Federal Reserve's cautious outlook for rate cuts in 2025 spooked investors. All sectors closed in the red, with consumer discretionary, real estate, and technology stocks hit hardest.
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us fiscal deficit challenges persist under potential second trump administration
16:59 19.12.2024
us fiscal deficit challenges persist under potential trump administration second term
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us fiscal deficit challenges persist under potential trump administration second term
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