USD: Fiscal path and tariffs shape outlook – NBC

Source Fxstreet

National Bank Of Canada’s Ethan Currie and Taylor Schleich stress that the U.S. fiscal trajectory remains unsustainable despite additional tariff revenues. The Congressional Budget Office (CBO) now projects more cumulative deficits versus its prior outlook, with the One, Big, Beautiful Bill and stricter immigration policy worsening the picture. Political uncertainty over future tariff policy adds another layer of risk to the U.S. macro backdrop.

Unsustainable deficits and tariff uncertainty

"This won’t come as news, but the U.S. federal government is on an unsustainable fiscal path."

"And even though tariffs were promised to be a source of fiscal consolidation, the broader deficit / debt burden outlook has worsened relative to the CBO’s prior (Jan-25) projections (Chart 2)."

"Taken together, this suggests that the primary deficit could step down over the next decade, though we’d note these projections assume policy stability—which is far from guaranteed, especially in regard to trade."

"While a protectionist agenda may persist, the White House is facing increasing pressure (ahead of midterm elections) to rein in debt, costs, and tariff rates."

"Uncertainty about whether tariffs will remain in place following this administration’s tenure also exists."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Today’s Market Recap: AI Panic Intensifies, Global Assets Fall BroadlyTracking Market TrendsTradingKey - On the eve of the U.S. CPI data release, AI panic escalated. Amid deep-seated concerns that artificial intelligence will disrupt business models across many industri
Author  TradingKey
7 hours ago
Tracking Market TrendsTradingKey - On the eve of the U.S. CPI data release, AI panic escalated. Amid deep-seated concerns that artificial intelligence will disrupt business models across many industri
placeholder
Silver Price Forecast: XAG/USD rebounds above $76.50 after sharp drop, eyes on US CPI dataSilver price (XAG/USD) recovers some lost ground to near $76.60 during the Asian trading hours on Friday. The white metal suddenly fell late Thursday, pushing silver down more than 11%.
Author  FXStreet
16 hours ago
Silver price (XAG/USD) recovers some lost ground to near $76.60 during the Asian trading hours on Friday. The white metal suddenly fell late Thursday, pushing silver down more than 11%.
placeholder
Is SaaS Dead? The Truth Behind the Software Meltdown, the Missing Floor, and the Peak That’s Not Coming BackOver the past few weeks, you’ve probably seen the same refrain everywhere: “SaaS has crashed this much, valuations must have bottomed, time to buy the dip.”On the surface, that sounds tempting. A lot
Author  TradingKey
Yesterday 10: 22
Over the past few weeks, you’ve probably seen the same refrain everywhere: “SaaS has crashed this much, valuations must have bottomed, time to buy the dip.”On the surface, that sounds tempting. A lot
placeholder
Bitcoin Realized Losses Rival Luna Crash Levels as Market Absorbs $2 Billion HitBitcoin network realizes $1.99 billion in losses, rivaling the 2022 Luna crash, though analysts view the $67,000 flush as a cyclical cleanse rather than a structural breakdown.
Author  Mitrade
Yesterday 07: 38
Bitcoin network realizes $1.99 billion in losses, rivaling the 2022 Luna crash, though analysts view the $67,000 flush as a cyclical cleanse rather than a structural breakdown.
placeholder
Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's OutlookThe financial world is perpetually in motion, but the landscape for 2026 seems to be shaping up to be particularly dynamic. For CFD traders navigating global markets, this heightened volatility could present a distinctive set of challenges and opportunities.
Author  Rachel Weiss
Yesterday 05: 31
The financial world is perpetually in motion, but the landscape for 2026 seems to be shaping up to be particularly dynamic. For CFD traders navigating global markets, this heightened volatility could present a distinctive set of challenges and opportunities.
Related Instrument
goTop
quote