5 June 2025 | Dollar

Trump's reforms threaten sharp increase in budget deficit — US Congressional Budget Office

Trump's reforms threaten sharp increase in budget deficit — US Congressional Budget Office

Donald Trump's tax reforms continue to cause mixed reactions from experts. Last month, after some heated debates, the bill was passed by the House of Representatives with a small majority. The Senate will decide the future of the US president's initiative. A few lawmakers have already called for changes to the bill.

According to the nonpartisan Congressional Budget Office's calculations, the tax bill will increase the US budget deficit by $2.42 trillion over the next decade. Compared to baseline projections, expected government revenues will decline by $3.67 trillion through 2034, while spending will decrease by only $1.25 trillion.

However, Bloomberg experts note that the agency's calculations do not take into account the potential growth of the US economy as a result of the president's tax reforms. A significant rise in the country's GDP could partially offset the deficit.

Nevertheless, the Congressional Budget Office's assessment has already raised doubts among officials. This week, Republican ally Elon Musk spoke out against Trump's bill. The businessman expressed extreme disapproval of “such wastefulness,” as cited by Bloomberg.

Elena Dorokhina MarketCheese
Period: 21.05.2026 Expectation: 1500 pips
Selling S&P 500 with 7,300 target amid inflation shock and overheated market conditions
Today at 08:03 AM 3
Gold sell
Period: 31.05.2026 Expectation: 600 pips
Gold sell-off targets $4,640
Today at 04:15 AM 6
Period: 31.05.2026 Expectation: 400 pips
Buying AUDUSD up to 0.7280
Today at 04:15 AM 8
Period: 13.06.2026 Expectation: 1000 pips
Go long on USDCAD with 1.38800 target in play
Yesterday at 10:48 AM 47
Period: 20.05.2026 Expectation: 100 pips
Natural gas prices are correcting within upward channel ahead of another rally
Yesterday at 09:39 AM 25
Period: 20.05.2026 Expectation: 1000 pips
Investing in NVIDIA stock with $230 in sight
Yesterday at 09:06 AM 16
Go to forecasts