Bitcoin News Today: Trump’s OBBB and Tariffs Fuel $2 Trillion Savings, 50% Deficit Cut Outlook

The Trump administration’s economic agenda, centered on spending cuts, trade policies, and regulatory rollbacks, projects a 50% reduction in the U.S. federal deficit over the next decade. According to the Office of Management and Budget (OMB), cumulative deficits from 2026 to 2035 are expected to total $15.7 trillion, down from an earlier projection of $31.5 trillion. The administration attributes this anticipated decline to the One Big Beautiful Bill Act (OBBB), which passed in July 2025 and is estimated to save nearly $2 trillion, primarily through Medicaid reform and adjustments to student loan forgiveness and SNAP programs. These changes aim to enhance the sustainability of social programs while curbing long-term spending growth [1].

Trump’s trade policies, particularly the imposition of tariffs, are also credited with contributing to the deficit reduction. The U.S. has collected $136 billion in customs duties from the start of fiscal year 2025 through July, representing a 116% increase compared to the same period in the previous year. The administration projects that tariff revenues will add approximately $5 trillion over the next decade, significantly exceeding baseline estimates. However, critics argue that the assumptions underpinning these projections may be overly optimistic and fail to account for potential consumer costs or international trade retaliation [1].

Amid this evolving fiscal landscape, the Trump administration’s influence extends to the Federal Reserve, as highlighted by Matrixport in a September 8 report. The firm notes that political pressures on the Fed, including Trump’s advocacy for preferred nominees, have contributed to shifting rate expectations and increased safe-haven demand. While these developments do not constitute a definitive policy overhaul, they are seen as shaping market perceptions of monetary governance and inflation expectations [3].

Simultaneously, there has been a marked shift in capital flows within the crypto sector, with crypto funds increasingly directing capital toward tokenized gold. This trend reflects a broader reallocation of assets as investors seek alternative stores of value amid concerns over U.S. fiscal discipline. The Matrixport report identifies a growing interconnection between gold and Bitcoin, with both assets benefiting from heightened safe-haven demand and macroeconomic uncertainty. The $1.2 trillion in new U.S. debt issuance, following the recent $5 trillion debt ceiling agreement, is cited as a key driver of this trend [3].

Analysts remain divided on the long-term viability of the Trump administration’s fiscal projections. While officials highlight the OBBB and trade policies as catalysts for economic growth and deficit reduction, external experts caution that the OMB’s assumptions may be unrealistic. For instance, the Congressional Budget Office (CBO) has previously projected that similar legislative measures could actually increase deficits. Jai Kedia, a research fellow at the Cato Institute, acknowledges the administration’s efforts but underscores the risks associated with aggressive spending cuts and tariff-driven revenue assumptions [1].

Nonetheless, the Trump administration remains optimistic about its economic trajectory. Officials argue that pro-growth tax reforms, regulatory reductions, and energy policy initiatives will further support long-term fiscal sustainability. While the full implementation of these policies remains uncertain, the administration’s projections highlight a continued focus on deficit reduction and economic expansion. The extent to which these objectives will be realized remains to be seen, with market responses and political dynamics likely to play pivotal roles in shaping future outcomes [1].

Source: [1] Trump's economic agenda will cut deficit by half over next 10 years (https://www.foxbusiness.com/politics/omb-forecast-trumps-economic-agenda-cut-deficit-half-over-next-10-years) [2] One Big Beautiful Bill Act (https://en.wikipedia.org/wiki/One_Big_Beautiful_Bill_Act) [3] Bitcoin Demand Climbs as $1.2T U.S. Debt, Trump's Fed Push, and Tokenized Gold Inflows Boost Safe-Haven Flows (https://en.coinotag.com/breakingnews/bitcoin-demand-climbs-as-1-2t-u-s-debt-trumps-fed-push-and-tokenized-gold-inflows-boost-safe-haven-flows/)