Research shows that reducing the fiscal deficit may help Trump achieve economic goals.

Gate News bot message, on July 1, the trading information platform Kobeissi Letter put forward a rather ironic viewpoint: by eliminating the U.S. fiscal deficit, all of President Trump's economic goals could be achieved at once.

Reducing deficit spending will bring a series of positive effects: lowering the issuance and yield of government bonds, curbing inflation, and providing the Federal Reserve with room to cut interest rates and stabilize the bond market. It is noteworthy that the turning point in the trade war in April was precisely due to the 10-year Treasury yield breaking 4.60%. A moderate reduction in deficit spending may also provide Trump with greater maneuvering space to narrow the trade deficit.

As Musk continues to voice warnings about the debt crisis, the American public's attention to this issue is increasing. Analysis indicates that since the implementation of pandemic stimulus measures in 2020, the current fiscal path in the United States may be difficult to sustain.