President Trump has reshaped the country’s economic policies, but the outlook for the budget remains dire.
In the first year of his second term, President Trump has tried to radically reshape America’s economy. He has slashed taxes, raised tariffs to their highest levels in almost a century, unilaterally canceled federal spending, pushed down immigration and pressured the Federal Reserve to sharply lower interest rates.
When it comes to the overall federal budget, though, the effect of these dramatic changes has nearly been a wash. The country is still on track to borrow what economists consider an alarming amount of money in the coming years. But the situation, on paper at least, has gotten only somewhat worse, but not significantly, under Mr. Trump’s unorthodox policy mix.
