Core Viewpoint - The Supreme Court's ruling against most of the Trump administration's tariffs has heightened concerns among economists regarding the worsening federal debt situation in the U.S. [1] Economic Outlook - The U.S. federal deficit is projected to exceed $1.85 trillion in the current fiscal year, an increase from $1.78 trillion in the previous year [1]. - Economists have been urging the administration to implement measures to reduce the federal deficit even prior to the Supreme Court's decision [1].

U.S. President Donald Trump presents a sweeping spending and tax legislation, known as the "One Big Beautiful Bill Act," after he signed it, at the White House in Washington, D.C., U.S., July 4, 2025. It also cautioned that the ratings could "come under pressure if political developments weigh on the strength of American institutions and the effectiveness of long-term policymaking or independence of the Federal Reserve." "This, in turn, could jeopardize the dollar's status as the world's leading reserve cur ...