The US deficit continues to climb, prompting concerns about fiscal sustainability. PIMCO Head of US Public Policy Libby Cantrill joined Market Domination to discuss the deficit's challenging trajectory.
Cantrill notes that regardless of the November election outcome, the deficit would have been "the biggest loser." She calls the current deficit at 6.5% of GDP "pretty awful."
With Trump proposing a Department of Government Efficiency (DOGE) to cut unnecessary spending, Cantrill states: "To really move the needle fiscally, you either have to increase taxes or ... take a hard look at some of the entitlement programs." However, she points to the challenge of limited "political appetite" for such decisions.
"So we might see some spending cuts," she questioned, "but will that really offset the cost of the extension of the tax cuts?"
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This post was written by Angel Smith
