The US budget deficit declined slightly for the 2025 fiscal year as tariff revenue hit a record high, though the pace of borrowing remains historically elevated at a time of economic expansion and financial stability https://t.co/CzwOcaOunT ...

Group 1 - The current political climate is marked by tensions regarding potential government layoffs, with conflicting narratives from the White House and Republican leaders [1][2][3] - There is skepticism about the actual implementation of mass firings, as historical procedures and reforms limit unilateral actions by the government [4][5] - The Supreme Court's upcoming decision on tariffs could significantly impact the current tariff regime, which has been challenged for exceeding presidential authority [8][9] Group 2 - The government's deficit spending is projected to reach $1.7 trillion, approximately 6% of GDP, raising concerns about sustainability [11] - Tariffs are expected to generate $300 billion in revenue by 2026, but their enforceability remains uncertain, complicating budget forecasts [12][13] - The bond market is showing signs of nervousness regarding government fiscal policies, particularly in light of unsustainable deficit levels [13]

The bond market should be anxious about the US budget deficit, especially since there are no plans in the works to make a significant dent in the problem, according to Guggenheim Co-Chair Jim Millstein https://t.co/166mzS5ICe ...