Donald Trump returned to the White House promising to cut government waste, reduce federal spending and bring down America’s deficit. But more than a year into his second term, the US fiscal picture is facing growing pressure, with total national debt surpassing $40 trillion.

The administration launched the Department of Government Efficiency (DOGE) with an ambitious goal of identifying waste and generating major savings. However, reported savings fell far short of the initial targets, while overall government spending remained high.

Trump’s major tax-and-spending package also created a difficult fiscal trade-off. While the administration argued that lower taxes would boost investment and economic growth, reduced tax revenue can add pressure to the deficit unless spending falls sufficiently.

Tariffs were another key part of Trump’s strategy, with the administration presenting them as both a trade tool and a potential source of revenue. However, tariff revenues have faced volatility while also raising concerns about inflation and higher costs for businesses and consumers.

Trump’s Fiscal Promise Under Pressure: US Debt Surpasses $40 Trillion | Deficit And Borrowing Rise

US President Donald Trump has renewed his effort to remove Federal Reserve Governor Lisa Cook, reigniting a major legal and political battle over presidential power and the independence of America's central bank.

The Trump administration is seeking Cook's removal over allegations involving mortgage documents from 2021, before she joined the Federal Reserve in 2022. Trump has accused Cook of mortgage fraud, while Cook denies wrongdoing and her lawyers have called the allegations baseless and politically motivated.

The Supreme Court previously ruled 5–4 that Cook could remain in her position while she challenges her removal, finding that she had not been given the required procedural protections. However, the ruling did not permanently prevent Trump from attempting to remove her again.

Chief Justice John Roberts indicated that the president could pursue removal if Cook received proper notice and an opportunity to respond. Cook's deadline to respond is August 26.

Trump Renews Effort to Fire Fed Governor Lisa Cook | Battle Over Federal Reserve Independence

President Donald Trump's economic strategy is facing fresh scrutiny as his administration continues using tariffs and sanctions to pressure trading partners and geopolitical rivals.

New tariffs of up to 12.5% on imports from 60 countries are now facing legal challenges, with multiple US states arguing that the administration exceeded its authority. Economists also suggest that American businesses and consumers—not foreign exporters—are paying much of the cost through higher prices.

At the same time, US sanctions on Russia have pushed Moscow to expand alternative payment systems, shadow shipping networks, and trade partnerships with countries such as China and India.

Trump's Tariffs & Sanctions Under Fire | Are US Economic Pressure Tactics Failing?

Donald Trump has intensified the use of tariffs and sanctions as key tools of economic pressure. But are these measures achieving their intended goals? From trade disputes to geopolitical rivalries, questions are growing about the effectiveness of America's economic warfare strategy. This report examines the impact of tariffs, sanctions, and the limits of economic coercion in today's interconnected global economy.

Are Trump's economic weapons failing?

The United States has imposed a new 10% tariff on imports from India under Section 301 of the Trade Act of 1974, citing concerns over the enforcement of laws against goods produced using forced labor. The tariff is part of a broader trade action targeting multiple economies. While India was initially expected to face a 12.5% tariff, the rate was reduced after New Delhi amended its foreign trade policy to prohibit imports made using forced labor. The US Department of Labor highlighted concerns across several Indian sectors, including textiles, garments, tea, shrimp processing, leather goods, carpets, fireworks, rice mills, and stone quarries. Industry experts warn that the permanent nature of the Section 301 tariffs could affect Indian exports, investments, and ongoing India-US trade negotiations.

US Imposes 10% Tariff on India | Trump Targets Forced Labor, Trade Talks Face New Challenge

The decades-old Cauvery water dispute may be entering a new phase as Karnataka Chief Minister DK Shivakumar and Tamil Nadu Chief Minister Vijay are expected to hold high-level talks in Bengaluru. The proposed meeting is likely to focus on the controversial Mekedatu balancing reservoir project and water-sharing during distress years.
If the meeting takes place, it will mark the first bilateral dialogue between the chief ministers of Karnataka and Tamil Nadu on the Cauvery issue in decades. The development comes amid renewed political pressure over water allocation, with former Tamil Nadu Chief Minister MK Stalin urging stronger action to protect the state's share of Cauvery waters.

Cauvery Water Row: Karnataka & Tamil Nadu CMs to hold key Mekedatu talks

American companies are becoming more global than ever, even as Washington continues its America First agenda and pushes massive investments into domestic AI infrastructure. New data shows that S&P 500 companies now generate around 42% of their revenue from outside the United States, reaching a historic record and surpassing previous highs seen during the dotcom era. Technology companies are leading this global expansion, with foreign markets contributing more than half of the sector’s revenue. Major communication companies, including firms like Meta, Alphabet, and Netflix, have also increased their international exposure significantly.

US companies hit record global revenue levels despite America first push and AI boom

#Gravitas U.S. President Donald Trump’s media company is planning to charge for special high-speed access to his Truth Social posts. The paid service will give Wall Street firms high-speed access to its most influential posts. 

Sell bibles, sneakers, truth social posts: How to make money as an American president

For U.S. president Donald Trump, the stock market has become more than just an economic indicator. It has become a measure of his presidency.

Record equities, unequal gains: U.S. economy under Trump

The US economy may continue to grow, but a growing body of research suggests that American workers are receiving a smaller share of that growth than ever before.The trend is also reflected in rising financial stress, with many households struggling to keep up with inflation. Here's a closer look at why the gap between economic growth and workers' earnings continues to widen. American workers are taking home the smallest share of the nation's economic output since official records began in 1947. According to research by the Federal Reserve Bank of New York, labour's share of national income has fallen to 54.1 per cent in early 2026, down from more than 65 per cent after World War II and 57.7 per cent in early 2020. The rest of the economic gains are increasingly flowing to corporations, shareholders and investors through profits, dividends and capital income. The findings suggest that while the U.S. economy has continued to expand, workers are capturing a progressively smaller share of that growth. The shift is also visible within corporate America.&nbsp;Also read | <a href="https://www.wionews.com/india-news/when-will-petrol-and-diesel-get-cheaper-in-india-modi-government-s-petroleum-minister-hardeep-puri-drops-big-hint-1783041168875">When will petrol and diesel get cheaper in India? Modi government's petroleum minister Hardeep Puri drops BIG HINT</a> Workers received 71.3 per cent of corporate income in the first quarter of 2026, down from 77.8 per cent at the start of 2020 and 79.1 per cent in 1979, according to the Economic Policy Institute. Economists attribute the long-term decline to weakening union membership, a stagnant federal minimum wage that has remained at $7.25 an hour since 2009, and policy changes that have strengthened returns to capital over labour. &nbsp;As corporate profits and shareholder returns have risen, wage growth has struggled to keep pace. This contributes to what economists describe as a widening K-shaped economy, where higher-income households continue to pull ahead while many middle- and lower-income workers fall behind.&nbsp; The declining share of income going to workers is reflected in household finances. Nearly 48 per cent of Americans said their financial situation had worsened compared with a year earlier, according to the Federal Reserve Bank of New York. A separate CBS News survey found that three out of four Americans believe their incomes are not keeping up with inflation, while only 29 per cent rate the economy as being in good shape. Rising living costs, record levels of household debt, higher credit card delinquencies and concerns over job security are adding to financial pressure. Analysts say consumer spending remains supported largely by wealthier households, but the widening gap continues to raise concerns over long-term economic inequality and the durability of consumer demand.&nbsp;Watch | US jobs miss big: Only 57k added in June<a href="https://www.wionews.com/videos/us-jobs-miss-big-only-57k-added-in-june-1783057330240/embed">https://www.wionews.com/videos/us-jobs-miss-big-only-57k-added-in-june-1783057330240/embed</a>&nbsp;

According to research by the Federal Reserve Bank of New York, labour's share of national income has fallen to 54.1 per cent in early 2026, down from more than 65 per cent after World War II and 57.7 per cent in early 2020.

The US economy may continue to grow, but a growing body of research suggests that American workers are receiving a smaller share of that growth than ever before.The trend is also reflected in rising financial stress, with many households struggling to keep up with inflation. Here's a closer look at why the gap between economic growth and workers' earnings continues to widen. American workers are taking home the smallest share of the nation's economic output since official records began in 1947. According to research by the Federal Reserve Bank of New York, labour's share of national income has fallen to 54.1 per cent in early 2026, down from more than 65 per cent after World War II and 57.7 per cent in early 2020. The rest of the economic gains are increasingly flowing to corporations, shareholders and investors through profits, dividends and capital income. The findings suggest that while the U.S. economy has continued to expand, workers are capturing a progressively smaller share of that growth. The shift is also visible within corporate America. Also read | When will petrol and diesel get cheaper in India? Modi government's petroleum minister Hardeep Puri drops BIG HINT Workers received 71.3 per cent of corporate income in the first quarter of 2026, down from 77.8 per cent at the start of 2020 and 79.1 per cent in 1979, according to the Economic Policy Institute. Economists attribute the long-term decline to weakening union membership, a stagnant federal minimum wage that has remained at $7.25 an hour since 2009, and policy changes that have strengthened returns to capital over labour. As corporate profits and shareholder returns have risen, wage growth has struggled to keep pace. This contributes to what economists describe as a widening K-shaped economy, where higher-income households continue to pull ahead while many middle- and lower-income workers fall behind. The declining share of income going to workers is reflected in household finances. Nearly 48 per cent of Americans said their financial situation had worsened compared with a year earlier, according to the Federal Reserve Bank of New York. A separate CBS News survey found that three out of four Americans believe their incomes are not keeping up with inflation, while only 29 per cent rate the economy as being in good shape. Rising living costs, record levels of household debt, higher credit card delinquencies and concerns over job security are adding to financial pressure. Analysts say consumer spending remains supported largely by wealthier households, but the widening gap continues to raise concerns over long-term economic inequality and the durability of consumer demand. Watch | US jobs miss big: Only 57k added in June https://www.wionews.com/videos/us-jobs-miss-big-only-57k-added-in-june-1783057330240/embed

According to research by the Federal Reserve Bank of New York, labour's share of national income has fallen to 54.1 per cent in early 2026, down from more than 65 per cent after World War II and 57.7 per cent in early 2020.

The American dream slips further away

Since 1900, the US economy spent 36 to 45 percent of every decade in recession that is until the 2010s, when that number hit zero. The 2020s are tracking near 3 percent. In this next report, we decode how the business cycle, the thing that built modern macroeconomics, may be breaking down. Take a look.


Recession Risk: Is the Cycle Obsolete Now?

Donald Trump says the U.S. economy is “doing great,” pointing to cooling inflation, strong oil, and easing prices. But do the numbers back that claim? Let’s break down the claims in our ‘News in Numbers’ segment.


Trump’s Economic Fact Check: Hype vs Reality

Donald Trump has highlighted America’s energy strength, claiming the country is drilling more oil than ever before. He also praised the performance of the U.S. economy and stock market, calling them among the strongest globally. The remarks come amid ongoing geopolitical tensions and debates over energy security, economic growth, and market stability.


US President Says Country is Drilling More Oil; Hails US Economy & Stock Market

The latest data shows US consumer spending growth slowing sharply to just 0.8%, signaling mounting pressure on the world’s largest economy. Analysts warn that weakening consumption a key driver of US GDP could point toward a broader economic slowdown, with concerns rising over inflation stickiness, high interest rates, and declining household demand. 

US Economy: US Spending Growth Weakens to 0.8%, Economy Near Stress Zone

Amid rising geopolitical tensions and energy shocks, the slowdown in the US economy has highlighted concerns with limited but notable implications for India, according to a report by SBI Research. The report suggests that the current situation could unfold differently from previous recession cycles, though it may still carry some limited yet meaningful consequences for India. It highlights that historically, major global oil shocks have typically been followed by a recession in the United States. Instances such as the 1973 oil embargo, the 1979 Iran crisis, the Gulf War, and the 2008 global financial crisis all witnessed sharp surges in crude prices preceding economic contractions in the US.<h3>US Economy in the past</h3>However, the report emphasises that the current scenario is structurally different. Unlike in the past, the US economy is now more energy self-sufficient and has evolved into a net exporter of energy. The changes indicate that increased oil prices may not exhaust domestic resources, as increased energy spending resides within the country. In addition, US households are getting benefits from substantial tax refunds, which could shield consumption and delay any downturn. The report warns that although risks remain high due to the ongoing West Asia crisis and disruptions in global supply chains, the usual strong link between oil shocks and US recessions may not be as pronounced this time. Regarding India, SBI Research noted that the country is approaching this period of global uncertainty from a relatively strong position. India posted a solid GDP growth of 7.6 per cent in FY26 and is expected to expand by around 6.5–6.8 per cent in FY27 despite challenging global conditions. It added that India’s strong macroeconomic fundamentals, such as healthy domestic demand, a robust banking system, and stable financial conditions, act as a cushion against external shocks. The report also compared the current situation to the Russia-Ukraine conflict period, when India managed to sustain strong growth. However, it cautioned that indirect impacts, like rising crude oil prices, inflationary pressures, and global trade disruptions, could slow growth. It also stressed the importance of policy measures, particularly to manage the balance of payments and support currency stability.&nbsp;Also read: <a href="https://www.wionews.com/world/-there-will-be-consequences-india-warns-iran-after-attack-on-2-tankers-in-hormuz-1776597009259">‘There will be consequences,’ India warns Iran after attack on 2 tankers in Hormuz</a>

The report also warns that although risks remain high due to the ongoing West Asia crisis and disruptions in global supply chains, the usual strong link between oil shocks and US recessions may not be as pronounced this time.

Amid rising geopolitical tensions and energy shocks, the slowdown in the US economy has highlighted concerns with limited but notable implications for India, according to a report by SBI Research. The report suggests that the current situation could unfold differently from previous recession cycles, though it may still carry some limited yet meaningful consequences for India. It highlights that historically, major global oil shocks have typically been followed by a recession in the United States. Instances such as the 1973 oil embargo, the 1979 Iran crisis, the Gulf War, and the 2008 global financial crisis all witnessed sharp surges in crude prices preceding economic contractions in the US. US Economy in the past However, the report emphasises that the current scenario is structurally different. Unlike in the past, the US economy is now more energy self-sufficient and has evolved into a net exporter of energy. The changes indicate that increased oil prices may not exhaust domestic resources, as increased energy spending resides within the country. In addition, US households are getting benefits from substantial tax refunds, which could shield consumption and delay any downturn. The report warns that although risks remain high due to the ongoing West Asia crisis and disruptions in global supply chains, the usual strong link between oil shocks and US recessions may not be as pronounced this time. Regarding India, SBI Research noted that the country is approaching this period of global uncertainty from a relatively strong position. India posted a solid GDP growth of 7.6 per cent in FY26 and is expected to expand by around 6.5–6.8 per cent in FY27 despite challenging global conditions. It added that India’s strong macroeconomic fundamentals, such as healthy domestic demand, a robust banking system, and stable financial conditions, act as a cushion against external shocks. The report also compared the current situation to the Russia-Ukraine conflict period, when India managed to sustain strong growth. However, it cautioned that indirect impacts, like rising crude oil prices, inflationary pressures, and global trade disruptions, could slow growth. It also stressed the importance of policy measures, particularly to manage the balance of payments and support currency stability. Also read: ‘There will be consequences,’ India warns Iran after attack on 2 tankers in Hormuz

The report also warns that although risks remain high due to the ongoing West Asia crisis and disruptions in global supply chains, the usual strong link between oil shocks and US recessions may not be as pronounced this time.

Oil shocks may slowdown US economy amid geopolitical tensions, India to remain resilient: SBI

A fragile ceasefire between the United States and Iran may have paused direct hostilities, but the economic aftershocks continue to reshape America’s financial outlook. Disruptions linked to the Strait of Hormuz crisis have pushed energy prices higher, added inflationary pressure and increased uncertainty across markets.


US-Iran Ceasefire | A Short War, Long Shadow: How Iran Conflict Reshaping US Economy

The Iran war is hitting the US where it hurts most: its own economy. In recent days, American markets have wiped out more than a trillion dollars in value, with indices hitting eight-month lows between March 26 and 30. Here are five key indicators showing that President Donald Trump’s Middle East outing is proving costly for American consumers and corporations, causing oil-price-driven inflation and a financial market rout.<h2>$1.2 trillion wiped off markets in a single day</h2>According to compiled data, at least $1.2 trillion was wiped off US markets in a single day. The S&amp;P 500 fell by 1.66 per cent, erasing around $1 trillion, while the Nasdaq dropped 2.09 per cent, losing about $600 billion, and the Dow fell by 1.2 per cent, shedding $300 billion. Late March is seeing some of the heaviest sell-off days.Also read: <a href="https://www.wionews.com/world/gulf-tensions-explode-as-iran-hits-sets-ablaze-kuwaiti-oil-tanker-al-salmi-near-dubai-amid-war-with-us-and-israel-1774936019011">Gulf tensions explode as Iran hits, sets ablaze Kuwaiti oil tanker Al-Salmi near Dubai | Watch video</a><h2>US recession looming, according to prediction markets; corporate profits hit</h2>On the prediction website Polymarket, the odds favour a 37 per cent chance of a US recession by the end of 2026. This reflects crowd-sourced sentiment on war-driven risks to the American economy and businesses.Corporate profits are being affected, and these costs are being passed on to consumers, leading to inflation as well as delays in investment and hiring. These factors are pushing recession odds to 37 per cent.This represents real wealth destruction for 401(k)s, pensions and businesses. The financial conditions of both consumers and businesses are worsening faster than any Federal Reserve move could offset.Also read: <a href="https://www.wionews.com/world/trump-willing-to-end-iran-war-without-reopening-strait-of-hormuz-1774923738453">Trump willing to end Iran war without reopening Strait of Hormuz: New report makes EXPLOSIVE claims</a><h2>US oil prices up by more than $50 a barrel</h2>The pressure of the war is slowly showing up at the pump. WTI crude was trading near $57 per barrel in late December. Now it is flirting with $106 a barrel, a surge of around $50. Brent crude is similarly between $100 and $110, marking one of the sharpest monthly price spikes on record.The national average gasoline price is up 30 per cent in March, reaching $4 per gallon. Prices of diesel, jet fuel, and petrochemicals are also rising.Supply-side shocks are occurring due to threats to the Strait of Hormuz, Iranian production and infrastructure risks, and its retaliatory targeting of Gulf energy infrastructure. Despite the US being a net oil exporter, oil prices represent a far greater cost of the war for it, outpacing its military spending. This is because the country still imports refined products and faces global pricing.&nbsp;<a href="https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed">https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed</a><h2>No cash for discretionary spending: US consumer economy takes a hit</h2>Consumer spending accounts for nearly 70 per cent of US GDP. Higher energy costs are hitting household spending, particularly on discretionary items such as travel and shopping, as disposable incomes are squeezed.Demand is softening, with economists at Goldman Sachs and elsewhere raising 2026 inflation forecasts while trimming growth outlooks.<h2>Business margins are getting crushed</h2>Sectors linked to energy supply—such as transport, manufacturing, agriculture, and retail—are facing higher input and logistics costs.In essence, this resembles the classic oil shocks of the 1970s.This may become a key reason why Trump would want to end the war quickly, allowing oil flows to normalise through diplomacy or de-escalation.

The Iran war is battering the US economy, wiping out $1.2 trillion in market value in a single day. The oil price shocks are increasingly looking like the 1970s. Inflation is creeping in,  and recession risks are looming

The Iran war is hitting the US where it hurts most: its own economy. In recent days, American markets have wiped out more than a trillion dollars in value, with indices hitting eight-month lows between March 26 and 30. Here are five key indicators showing that President Donald Trump’s Middle East outing is proving costly for American consumers and corporations, causing oil-price-driven inflation and a financial market rout. $1.2 trillion wiped off markets in a single day According to compiled data, at least $1.2 trillion was wiped off US markets in a single day. The S&P 500 fell by 1.66 per cent, erasing around $1 trillion, while the Nasdaq dropped 2.09 per cent, losing about $600 billion, and the Dow fell by 1.2 per cent, shedding $300 billion. Late March is seeing some of the heaviest sell-off days. Also read: Gulf tensions explode as Iran hits, sets ablaze Kuwaiti oil tanker Al-Salmi near Dubai | Watch video US recession looming, according to prediction markets; corporate profits hit On the prediction website Polymarket, the odds favour a 37 per cent chance of a US recession by the end of 2026. This reflects crowd-sourced sentiment on war-driven risks to the American economy and businesses. Corporate profits are being affected, and these costs are being passed on to consumers, leading to inflation as well as delays in investment and hiring. These factors are pushing recession odds to 37 per cent. This represents real wealth destruction for 401(k)s, pensions and businesses. The financial conditions of both consumers and businesses are worsening faster than any Federal Reserve move could offset. Also read: Trump willing to end Iran war without reopening Strait of Hormuz: New report makes EXPLOSIVE claims US oil prices up by more than $50 a barrel The pressure of the war is slowly showing up at the pump. WTI crude was trading near $57 per barrel in late December. Now it is flirting with $106 a barrel, a surge of around $50. Brent crude is similarly between $100 and $110, marking one of the sharpest monthly price spikes on record. The national average gasoline price is up 30 per cent in March, reaching $4 per gallon. Prices of diesel, jet fuel, and petrochemicals are also rising. Supply-side shocks are occurring due to threats to the Strait of Hormuz, Iranian production and infrastructure risks, and its retaliatory targeting of Gulf energy infrastructure. Despite the US being a net oil exporter, oil prices represent a far greater cost of the war for it, outpacing its military spending. This is because the country still imports refined products and faces global pricing. https://www.wionews.com/videos/us-iran-war-rubio-says-talks-with-iran-ongoing-vows-hormuz-will-open-one-way-or-another-wion-1774942167548/embed No cash for discretionary spending: US consumer economy takes a hit Consumer spending accounts for nearly 70 per cent of US GDP. Higher energy costs are hitting household spending, particularly on discretionary items such as travel and shopping, as disposable incomes are squeezed. Demand is softening, with economists at Goldman Sachs and elsewhere raising 2026 inflation forecasts while trimming growth outlooks. Business margins are getting crushed Sectors linked to energy supply—such as transport, manufacturing, agriculture, and retail—are facing higher input and logistics costs. In essence, this resembles the classic oil shocks of the 1970s. This may become a key reason why Trump would want to end the war quickly, allowing oil flows to normalise through diplomacy or de-escalation.

The Iran war is battering the US economy, wiping out $1.2 trillion in market value in a single day. The oil price shocks are increasingly looking like the 1970s. Inflation is creeping in, &nbsp;and recession risks are looming

$1.2 trillion erased in a single day, US recession looming – 5 ways the Iran war is hitting America where it hurts most: its own economy

As the conflict between the US, Israel, and Iran escalates, the UAE has faced a massive barrage of drones and missiles. Iran's strategy goes beyond military targets, aiming to destabilise a key global investment hub that recently pledged $1.4 trillion to the US economy.


As the conflict between the US, Israel, and Iran escalates, the UAE has faced a massive barrage of drones and missiles. Iran's strategy goes beyond military targets, aiming to destabilise a key global investment hub that recently pledged $1.4 trillion to the US economy.

How Iranian attacks on UAE infrastructure could impact the US economy

The US economy missed 4th quarter growth estimates for 2025 with a significant margin as it grew at a modest 0.7 per cent, government data showed on Friday (Mar 13), marking a major downgrade amid fears of fallout from war in West Asia looms, and Washington's trade ties remain in flux in the aftermath of President Trump's trade war.&nbsp;The October to December quarter growth is sharply down from earlier estimates of 1.4 per cent, suggesting that the world's biggest economy was on a weaker footing than anticipated ahead of US-Israeli strikes targeting Iran on February 28, leading to spillover of war across the oil rich gulf region.&nbsp;The crude witnessed a steep rise to reach nearly $115 per barrel last week and remained near $100 on Friday due to pressure from the closure of the Strait of Hormuz by Iran, which accounts for shipping of around one-third of the world's oil supply.&nbsp;In the fourth quarter, the growth adjustment reflected "downward revisions to exports, consumer spending, government spending, and investment," the Commerce Department said.&nbsp;The poor growth figures came as Donald Trump completed one year in office after returning to White House, sparking fears of a cooling job market and rising inflation in the United States. However, the full-year growth figures stand at 2.1 per cent, marginally lower than earlier estimates of 2.2 per cent. &nbsp;&nbsp;Also Read:<a href="https://www.wionews.com/world/-aytollah-mojabata-is-injured-and-hiding-underground-hegesth-claims-us-struk-15000-targets-in-iran-1773404739066"> 'Ayatollah Mojtaba is disfigured and hiding underground': Hegseth claims US struck 15,000 targets in Iran</a>&nbsp;President Trump was quick to jump the gun to blame the opposition for the lengthy government shutdown late last year for the slowdown in growth when early estimates were released last month.&nbsp;Trump, who touted himself as the most suitable candidate to lead the US economy, initiated a sweeping tariff war in April 2025 shortly after his inauguration. Dubbing the move "Liberation Day," he announced a slew of reciprocal tariffs on dozens of countries, citing the massive fiscal deficit and unfair trade practices. At the time, he claimed that Washington would ink major new trade deals within 90 days. However, even after nearly 11 months, the US has only been able to sign a handful of deals with smaller nations and mid-sized economies like Indonesia, while negotiations with major powers remain stalled.&nbsp;A major shock to Trump's policies came in February 2026 when the US Supreme Court ruled that his use of the International Emergency Economic Powers Act (IEEPA) to impose those tariffs was unconstitutional. The 6-3 decision struck down the core of his trade agenda, plunging firms and international partners into a period of deep uncertainty regarding their trade relations with Washington.&nbsp;With the mid-term elections approaching, Trump’s recent policy reversals and failure to deliver on key promises, including his high-profile vow to settle the Russia-Ukraine war in "24 hours" and his commitment to ending "endless wars" abroad, could potentially lead to significant setbacks for the Republican Party at the polls.

The poor growth figures came as Donald Trump completed one year in office after returning to White House, sparking fears of a cooling job market and rising inflation in the United States.

The US economy missed 4th quarter growth estimates for 2025 with a significant margin as it grew at a modest 0.7 per cent, government data showed on Friday (Mar 13), marking a major downgrade amid fears of fallout from war in West Asia looms, and Washington's trade ties remain in flux in the aftermath of President Trump's trade war. The October to December quarter growth is sharply down from earlier estimates of 1.4 per cent, suggesting that the world's biggest economy was on a weaker footing than anticipated ahead of US-Israeli strikes targeting Iran on February 28, leading to spillover of war across the oil rich gulf region. The crude witnessed a steep rise to reach nearly $115 per barrel last week and remained near $100 on Friday due to pressure from the closure of the Strait of Hormuz by Iran, which accounts for shipping of around one-third of the world's oil supply. In the fourth quarter, the growth adjustment reflected "downward revisions to exports, consumer spending, government spending, and investment," the Commerce Department said. The poor growth figures came as Donald Trump completed one year in office after returning to White House, sparking fears of a cooling job market and rising inflation in the United States. However, the full-year growth figures stand at 2.1 per cent, marginally lower than earlier estimates of 2.2 per cent. Also Read: 'Ayatollah Mojtaba is disfigured and hiding underground': Hegseth claims US struck 15,000 targets in Iran President Trump was quick to jump the gun to blame the opposition for the lengthy government shutdown late last year for the slowdown in growth when early estimates were released last month. Trump, who touted himself as the most suitable candidate to lead the US economy, initiated a sweeping tariff war in April 2025 shortly after his inauguration. Dubbing the move "Liberation Day," he announced a slew of reciprocal tariffs on dozens of countries, citing the massive fiscal deficit and unfair trade practices. At the time, he claimed that Washington would ink major new trade deals within 90 days. However, even after nearly 11 months, the US has only been able to sign a handful of deals with smaller nations and mid-sized economies like Indonesia, while negotiations with major powers remain stalled. A major shock to Trump's policies came in February 2026 when the US Supreme Court ruled that his use of the International Emergency Economic Powers Act (IEEPA) to impose those tariffs was unconstitutional. The 6-3 decision struck down the core of his trade agenda, plunging firms and international partners into a period of deep uncertainty regarding their trade relations with Washington. With the mid-term elections approaching, Trump’s recent policy reversals and failure to deliver on key promises, including his high-profile vow to settle the Russia-Ukraine war in "24 hours" and his commitment to ending "endless wars" abroad, could potentially lead to significant setbacks for the Republican Party at the polls.

The poor growth figures came as Donald Trump completed one year in office after returning to White House, sparking fears of a cooling job market and rising inflation in the United States.

US economic growth falters as Trump’s tariffs and wars hit fourth quarter estimates

The economic cost of the US-Iran war is going far beyond rising oil and gas prices. Analysts warn that the conflict could fuel inflation, slow economic growth, disrupt global trade and shake financial markets in the United States. Rising fuel costs are already pushing up transportation, farming and manufacturing expenses, while investors worry about prolonged instability in global supply chains.


US-Iran War: Cost of Iran War Goes Beyond Oil and Gas Price for the US

The war in the gulf is rapidly turning into an economic crisis, with oil markets at the centre of the shock. Markets are now bracing for a prolonged disruption to supplies from the gulf, pushing energy prices sharply higher and forcing governments to respond. But before we get to the responses, let’s look at the economic cost so far. 


Israel-Iran War: Will Oil Markets Shape the Course of War?

President Donald Trump held a major economic speech in Georgia on Thursday, highlighting what he calls his successes in lowering inflation, boosting American energy production, and creating jobs. He also touted his tariff policies and promised further affordability for Americans ahead of the midterm elections.


Trump Touts Economic Gains in Georgia Speech

Union Minister Piyush Goyal described the announcement of the interim framework of the India-US trade agreement on Saturday (Feb 07) as "the day etched in golden letter." He stated that the $30 trillion US economy will be open to Indian exporters, with the lowest tariffs compared to neighbouring countries. At the same time, several sectors, such as gems and pharmaceuticals, are exempt from tariffs.&nbsp;Speaking at a press conference, Goyal said, “Today will be written in golden words. There is a wave of happiness across the country. New opportunities are opening up on a very large scale, especially for our farmers, artisans, and manufacturers.”&nbsp;"A $30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US," he said.&nbsp;The commerce minister assured that Indian farmers remain protected in this agreement, while Indian farm products will be exported to the United States at Zero duty. "Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market."&nbsp;Also Read: <a href="https://www.wionews.com/world/-will-attack-their-bases-iran-s-big-warning-to-trump-if-us-attacks-tehran-1770459293810">‘Will attack their bases’: Iran’s BIG warning to Trump if US attacks Tehran</a>&nbsp;“Products made by our farmers, including spices, tea, coffee, coconut, cashew, mango, banana, guava, pineapple, and processed items like jams and juices, will now face zero reciprocal tariff in the United States. Sensitive commodities like rice, wheat, sugar, millets, and pulses remain fully protected,” Goyal said.&nbsp;He emphasised that the agreement clearly states that "genetically modified (GM) food will not be allowed into India."&nbsp;Under the agreement, tariffs on a wide range of goods, including generic pharmaceuticals, gems &amp; diamonds, and aircraft parts, will be reduced to zero.&nbsp;"Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems &amp; diamonds, and aircraft parts, thereby further enhancing India's export competitiveness and Make in India. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors," Goyal added.

Addressing a press conference on interim framework of the India-US trade agreement, Goyal said that the Interests of farmers, MSMEs, artisans and craftsmen will remain protected. 

Union Minister Piyush Goyal described the announcement of the interim framework of the India-US trade agreement on Saturday (Feb 07) as "the day etched in golden letter." He stated that the $30 trillion US economy will be open to Indian exporters, with the lowest tariffs compared to neighbouring countries. At the same time, several sectors, such as gems and pharmaceuticals, are exempt from tariffs. Speaking at a press conference, Goyal said, “Today will be written in golden words. There is a wave of happiness across the country. New opportunities are opening up on a very large scale, especially for our farmers, artisans, and manufacturers.” "A $30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US," he said. The commerce minister assured that Indian farmers remain protected in this agreement, while Indian farm products will be exported to the United States at Zero duty. "Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market." Also Read: ‘Will attack their bases’: Iran’s BIG warning to Trump if US attacks Tehran “Products made by our farmers, including spices, tea, coffee, coconut, cashew, mango, banana, guava, pineapple, and processed items like jams and juices, will now face zero reciprocal tariff in the United States. Sensitive commodities like rice, wheat, sugar, millets, and pulses remain fully protected,” Goyal said. He emphasised that the agreement clearly states that "genetically modified (GM) food will not be allowed into India." Under the agreement, tariffs on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, will be reduced to zero. "Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India's export competitiveness and Make in India. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors," Goyal added.

Addressing a press conference on the interim framework of the India-US trade agreement, Goyal said that the Interests of farmers, MSMEs, artisans and craftsmen will remain protected.&nbsp;

‘Golden letter day’: Piyush Goyal hails India-US trade deal, rules out agriculture concessions

Economist Peter Schiff, who rose to prominence by predicting the 2008 financial crisis, when the subprime market blew up from the housing bubble, is once again warning of a looming crisis, as the Gold and Silver rallied after crashing on Friday. Peter Schiff is warning of a crisis of such magnitude that it will make the 2008 crisis look like a 'Sunday school picnic'.&nbsp;"Gold and silver are warning about a bigger crisis that's gonna hit either later this year or maybe next year. We are headed for a US dollar crisis and a sovereign debt crisis," Schiff said Tuesday in a Fox Business show, "The Claman Countdown."He said that the Central Banks are stocking up on Gold to back their currencies and getting rid of Dollars and US Treasuries. He said that the world is pulling the rug beneath the US. "We are headed for an economic crisis, again, that will make the 2008 financial crisis look like a Sunday school picnic." He said that the key difference this time will be the US all by itself.When asked what the problem is, “central banks hoarding gold” or a “looming government shutdown”, he said that there are a lot of problems, but instead of the government shutdown, “government will continue to operate” is the major problem. Peter Schiff, a renowned conservative economist, said that Trump is trying to sell the idea that the US economy is the hottest in the world; on the contrary, it is the “coldest” economy in the world and deserves an “F”. He said that we will see the blow up by the end of end of 2026, or by 2027.&nbsp;

<blockquote class="twitter-tweet" data-media-max-width="560">Peter Schiff, who gained fame for accurately predicting the 2008 financial crisis: The world is now pulling the rug out from under the US. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold… they’re getting rid of… <a href="https://t.co/Spp0JWLlhk">pic.twitter.com/Spp0JWLlhk</a>&mdash; Clash Report (@clashreport) <a href="https://twitter.com/clashreport/status/2016768237183062424?ref_src=twsrc%5Etfw">January 29, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;Pschiff criticised the “Big Beautiful Bill”, calling it a “nail in the coffin” as it increased the spending. He added that the election of Trump made the process of decline faster, “Trump is going around antagonising the world” by putting more tariffs. The US national debt is $38.6 trillion, and Trump has a history of several high-profile bankruptcies. Pschiff suggested that Trump has the whole economy backwards. He further added that it does not matter that Trump backed away from invading Greenland; the important thing is that he “put it out there that he was considering it”, displaying the US military might, which it only possesses because the rest of the world finances it. He said that the “World economy does not work because of us, our economy works because of the world. We have a dysfunctional consumer-based credit economy that rests on the foundation of the US dollar reserve currency status."&nbsp;

Gold and silver are flashing warning signs of a massive US dollar and debt crisis, economist Peter Schiff says, blaming rising debt, tariffs and global distrust.

Economist Peter Schiff, who rose to prominence by predicting the 2008 financial crisis, when the subprime market blew up from the housing bubble, is once again warning of a looming crisis, as the Gold and Silver rallied after crashing on Friday. Peter Schiff is warning of a crisis of such magnitude that it will make the 2008 crisis look like a 'Sunday school picnic'. "Gold and silver are warning about a bigger crisis that's gonna hit either later this year or maybe next year. We are headed for a US dollar crisis and a sovereign debt crisis," Schiff said Tuesday in a Fox Business show, "The Claman Countdown." He said that the Central Banks are stocking up on Gold to back their currencies and getting rid of Dollars and US Treasuries. He said that the world is pulling the rug beneath the US. "We are headed for an economic crisis, again, that will make the 2008 financial crisis look like a Sunday school picnic." He said that the key difference this time will be the US all by itself. When asked what the problem is, “central banks hoarding gold” or a “looming government shutdown”, he said that there are a lot of problems, but instead of the government shutdown, “government will continue to operate” is the major problem. Peter Schiff, a renowned conservative economist, said that Trump is trying to sell the idea that the US economy is the hottest in the world; on the contrary, it is the “coldest” economy in the world and deserves an “F”. He said that we will see the blow up by the end of end of 2026, or by 2027.

Gold and silver are flashing warning signs of a massive US dollar and debt crisis, economist Peter Schiff says, blaming rising debt, tariffs and global distrust.

US economist Peter Schiff says US dollar crisis will eclipse 2008 financial meltdown

The U.S. government faces a potential shutdown as Democrats block a funding package, citing concerns over recent immigration raids and the allocation of DHS funding.

US Govt Shutdown: Democrats Block Package Over Immigration Raids, DHS Funding

U.S. Consumer confidence readings paint a much weaker picture than is suggested by spending data. This likely reflects the bifurcation story.
Spending is being driven by a relatively small cohort of high-income households. On the other hand, middle and lower-income households are feeling more financial pressure and are more nervous about what the future holds.


Sentiment Adds to Evidence of K-shaped Story of U.S. Economy 

The US economy is highly exposed to swings on Wall Street, with about 62 percent of Americans invested in the stock market. Latest data shows household wealth surged to a record in the July to September quarter last year as markets hit all time highs. In this report, we examine how a sharp market downturn could ripple through the wider US economy.


Mechanism of US Economy as 62 Percent of Americans Invest in Stocks

President Donald Trump claimed that the US economic growth is at an all-time high and investment is booming, as he has defeated inflation, adding that his tariff policies have brought hundreds of billions of dollars into the US from foreign countries. The US president is in Michigan to promote his efforts to support manufacturing in the country, while trying to calm worries over the weakening job market.&nbsp;"Growth is exploding, productivity is soaring, investment is booming, incomes are rising", and that "inflation is defeated," he said during his speech at the Detroit Economic Club."One of the biggest reasons for this unbelievable success has been our historic use of tariffs. It was the tariff that made America strong and powerful in past generations," he added.&nbsp;He further boasted that growth is at an all-time high, and about new highs in the stock market, while blaming the Fed Chair Jerome Powell for keeping the interest rates high. "Today, if you announce great numbers, they raise interest rates to try and kill it, so you can never really have the kind of rally you should have," he said. Trump suggested that he wants someone to lead the Fed, "when the market is doing great, interest rates can go down".&nbsp;The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."<h2>The trade deal with Canada and Mexico is irrelevant</h2>Donald Trump declared that America does not need the USMCA trilateral deal, which enables business between North America's three biggest economies: the United States, Mexico and Canada. He added that he wants to encourage manufacturing in the US, not Canada.&nbsp;Also Read: <a href="https://www.wionews.com/world/secret-meeting-did-us-envoy-steve-witkoff-meet-exiled-crown-prince-reza-pahlavi-as-protests-in-iran-escalates-1768330093737">Secret meeting? Did US Envoy Steve Witkoff meet exiled crown prince Reza Pahlavi as protests in Iran escalates?</a>&nbsp;"There's no real advantage to it, it's irrelevant," he said, adding he wanted to build cars "here, not in Canada." Trump blamed the Biden administration for the decline in manufacturing and asserted that, currently, under him, "we have more plants being built in our country than in any time in history!"&nbsp;Trump made these remarks during a visit to the Ford Production facility in Dearborn, Michigan, ahead of his address on the US economy in Detroit.&nbsp;

The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."

President Donald Trump claimed that the US economic growth is at an all-time high and investment is booming, as he has defeated inflation, adding that his tariff policies have brought hundreds of billions of dollars into the US from foreign countries. The US president is in Michigan to promote his efforts to support manufacturing in the country, while trying to calm worries over the weakening job market. "Growth is exploding, productivity is soaring, investment is booming, incomes are rising", and that "inflation is defeated," he said during his speech at the Detroit Economic Club. "One of the biggest reasons for this unbelievable success has been our historic use of tariffs. It was the tariff that made America strong and powerful in past generations," he added. He further boasted that growth is at an all-time high, and about new highs in the stock market, while blaming the Fed Chair Jerome Powell for keeping the interest rates high. "Today, if you announce great numbers, they raise interest rates to try and kill it, so you can never really have the kind of rally you should have," he said. Trump suggested that he wants someone to lead the Fed, "when the market is doing great, interest rates can go down". The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up." The trade deal with Canada and Mexico is irrelevant Donald Trump declared that America does not need the USMCA trilateral deal, which enables business between North America's three biggest economies: the United States, Mexico and Canada. He added that he wants to encourage manufacturing in the US, not Canada. Also Read: Secret meeting? Did US Envoy Steve Witkoff meet exiled crown prince Reza Pahlavi as protests in Iran escalates? "There's no real advantage to it, it's irrelevant," he said, adding he wanted to build cars "here, not in Canada." Trump blamed the Biden administration for the decline in manufacturing and asserted that, currently, under him, "we have more plants being built in our country than in any time in history!" Trump made these remarks during a visit to the Ford Production facility in Dearborn, Michigan, ahead of his address on the US economy in Detroit.

The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."

US growth is exploding, inflation is defeated: Trump calls trade deal with Canada, Mexico ‘irrelevant’

After solid US economic growth data, bets on predictions platform polymarket show, the odds of the fed pausing rate cuts in january 2026 have surged to a new high of 86 percent. That suggests, fed chair jerome powell is about to halt rate cuts again, even as core inflation hits its lowest level since march 2021.

Trump Rants on Social Media on the Need for Rate Cuts Again

The US economy saw a significant boost in the third quarter, growing at an annualised rate of 4.3%, up from 3.8% in the previous quarter. This marks the strongest growth the economy has experienced in two years, exceeding expectations. These figures come as a clearer view of the economy emerges following delays in data collection due to the US government shutdown.&nbsp;The data revealed that consumer spending rose at a rate of 3.5%, compared to 2.5% in the previous quarter, despite concerns over inflation and a slowing job market. This increase in consumer activity, particularly in health care services, was one of the key drivers behind the economic expansion. Although growth this year has faced challenges from changes in trade and immigration policies, as well as cuts in government spending, the economy has still maintained steady momentum.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/crimes-of-do-kwon-freefall-of-south-korean-crypto-genius-fugitive-life-forged-passport-and-15-years-in-jail-terrausd-luna-ust-1766483420813">Crimes of Do Kwon: Freefall of South Korean crypto genius - fugitive life, forged passports and 15 years in jail</a><h2>Donald Trump credits tariffs for growth in the economy</h2>Imports continued to decline, likely a result of the new taxes imposed on shipments entering the US following President Donald Trump's spring tariff announcements. On the other hand, exports experienced a strong recovery, rising by 7.4%.&nbsp;President Trump attributed much of this growth to the tariffs his administration has put in place, claiming that they played a crucial role in boosting the economy. He further stated that conditions would continue to improve, and emphasized that there was "no inflation" and that the country was enjoying strong national security. “The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER! Also, NO INFLATION &amp; GREAT NATIONAL SECURITY. Pray for the U.S. Supreme Court!!! President DJT,” said US President Donald Trump in his post on Truth Social.

US economy accelerates by 4.3% with strong consumer spending and export growth in Q3

The US economy saw a significant boost in the third quarter, growing at an annualised rate of 4.3%, up from 3.8% in the previous quarter. This marks the strongest growth the economy has experienced in two years, exceeding expectations. These figures come as a clearer view of the economy emerges following delays in data collection due to the US government shutdown. The data revealed that consumer spending rose at a rate of 3.5%, compared to 2.5% in the previous quarter, despite concerns over inflation and a slowing job market. This increase in consumer activity, particularly in health care services, was one of the key drivers behind the economic expansion. Although growth this year has faced challenges from changes in trade and immigration policies, as well as cuts in government spending, the economy has still maintained steady momentum. Also Read: Crimes of Do Kwon: Freefall of South Korean crypto genius - fugitive life, forged passports and 15 years in jail Donald Trump credits tariffs for growth in the economy Imports continued to decline, likely a result of the new taxes imposed on shipments entering the US following President Donald Trump's spring tariff announcements. On the other hand, exports experienced a strong recovery, rising by 7.4%. President Trump attributed much of this growth to the tariffs his administration has put in place, claiming that they played a crucial role in boosting the economy. He further stated that conditions would continue to improve, and emphasized that there was "no inflation" and that the country was enjoying strong national security. “The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER! Also, NO INFLATION & GREAT NATIONAL SECURITY. Pray for the U.S. Supreme Court!!! President DJT,” said US President Donald Trump in his post on Truth Social.

The US economy grew at a faster-than-expected pace in Q3, expanding 4.3% due to a surge in consumer spending and a strong export recovery

The US dollar’s position as the world's main reserve currency is slowly being undermined, with several countries shedding their holdings of US Treasury securities, once considered the safest asset. Amid this, economist Peter Schiff warned that the US economy is on the brink of “the biggest economic crisis of our lifetimes,” citing the rise in gold and silver as other factors. What really is the situation with the US dollar? Let's dive in.<h2>Peter Schiff's warning on US economy</h2>Schiff warned that the fall in treasury holdings and rise in gold and silver prices could send consumer prices, bond yields, and unemployment soaring in the US.Some of his predictions could be alarmist and should be taken with a pinch of salt, as Schiff is a well-known gold advocate and frequent critic of US monetary policy. Schiff's forecasts are not new; he has been discussing hyperinflation, gold price surges, and imminent dollar destruction for 15 years, most of which did not happen within his predicted timeframe or scale.<h2>Gold and silver prices are indeed rising</h2>Gold and silver prices fluctuate daily, and both reached record or near-record highs in recent years, with gold around $2,600–$2,700 per ounce in late 2025, and silver above $30–$35 per ounce. Geopolitical uncertainties, Federal Reserve activity, and inflation hedging are among the reasons.<a href="https://www.wionews.com/videos/us-finance-the-dollar-hovers-near-two-month-lows-1765890227661/embed">https://www.wionews.com/videos/us-finance-the-dollar-hovers-near-two-month-lows-1765890227661/embed</a><h2>US Treasuries is a sign of trust in the dollar but who is trimming holdings?</h2>As the world’s primary reserve currency, the dollar is roughly 60 per cent of global reserves. Demand for US Treasuries remains strong. But foreign holdings of US Treasury securities - including bills, notes, and bonds - have slowly been declining, as tracked by the US Treasury Department’s Treasury International Capital (TIC) system.&nbsp;Total foreign holdings currently exceed $9 trillion, with the largest holders being Japan (around $1.1–1.2 trillion), followed by the UK (around $800–900 billion), and China (around $750–800 billion). Net inflows in recent months are primarily driven by private investors and some official institutions.Also read: <a href="https://www.wionews.com/business-economy/how-the-us-government-shutdown-will-affect-gold-dollar-bond-yield-1759309150735">How the US government shutdown will affect gold, dollar, bond yield</a>China has been the most notable long-term reducer of US Treasury holdings, after peaking at around $1.3 trillion in the early 2010s. Its holdings have fallen to roughly $750–760 billion. Diversification into gold and other currencies is part of China’s effort to reduce reliance on dollar assets amid geopolitical tensions.&nbsp;Russia’s holdings fell sharply after 2022 due to sanctions following the Ukraine invasion, declining to under $2 billion from tens of billions before 2022.Saudi Arabia and some other oil exporters have occasionally reduced holdings for short-term capital needs and diversification. Switzerland, Germany, and Norway have also trimmed US Treasury holdings in recent months, as have smaller holders like Brazil and Vietnam.These reductions have not led to broader sell-offs, at least for now.In fact, Japan has increased its holdings to record levels of around $1.15 trillion as of 2025. The UK has risen to the second-largest holder of US Treasuries, surpassing China this year, with around $850–865 billion currently.<h2>India is reducing its US Treasury holdings&nbsp;</h2>India has gradually reduced its US Treasury securities over the past year as part of a broader diversification strategy by the Reserve Bank of India (RBI). Factors include US trade policies, diversification trends, and a preference for gold as a hedge against dollar volatility and inflation.Concerns over US fiscal debt, credit rating issues, and rising yields have also contributed. India's US treasury holdings had peaked in 2024 at $247 billion, but fell to around $220 billion by year-end.Yet, India remains among the top 20 foreign holders of US Treasuries.Also read: <a href="https://www.wionews.com/business-economy/indian-rupee-slips-to-all-time-low-of-90-72-against-us-dollar-trump-tariffs-fpis-stock-market-news-indian-markets-investing-us-economy-1765804328339">Indian rupee slips to all-time low of 90.72 against US dollar</a><h2>India is increasing its gold reserves</h2>The RBI has simultaneously increased gold reserves, adding dozens of tonnes in 2025, bringing total reserves to over 880 metric tonnes. Gold now accounts for roughly 14–15 per cent of the RBI’s reserves. Overall, India’s total foreign exchange reserves have remained robust at around $690–700 billion, adequate to cover a large share of imports and external liabilities.Unlike Japan and the UK, India and other BRICS nations have trimmed exposure, often in response to global uncertainties.India's foreign currency assets usually constitute about 80–85 per cent of total reserves, mostly in US dollar-denominated assets such as US Treasury securities, deposits, and sovereign bonds.

US dollar may be facing a slow decline as the world's reserve currency, while gold and silver prices surge. Countries, including India have trimmed US Treasury holdings. But is it a gloom and doom scenario or a strategic shift? Find out


The US dollar’s position as the world's main reserve currency is slowly being undermined, with several countries shedding their holdings of US Treasury securities, once considered the safest asset. Amid this, economist Peter Schiff warned that the US economy is on the brink of “the biggest economic crisis of our lifetimes,” citing the rise in gold and silver as other factors. What really is the situation with the US dollar? Let's dive in. Peter Schiff's warning on US economy Schiff warned that the fall in treasury holdings and rise in gold and silver prices could send consumer prices, bond yields, and unemployment soaring in the US. Some of his predictions could be alarmist and should be taken with a pinch of salt, as Schiff is a well-known gold advocate and frequent critic of US monetary policy. Schiff's forecasts are not new; he has been discussing hyperinflation, gold price surges, and imminent dollar destruction for 15 years, most of which did not happen within his predicted timeframe or scale. Gold and silver prices are indeed rising Gold and silver prices fluctuate daily, and both reached record or near-record highs in recent years, with gold around $2,600–$2,700 per ounce in late 2025, and silver above $30–$35 per ounce. Geopolitical uncertainties, Federal Reserve activity, and inflation hedging are among the reasons. https://www.wionews.com/videos/us-finance-the-dollar-hovers-near-two-month-lows-1765890227661/embed US Treasuries is a sign of trust in the dollar but who is trimming holdings? As the world’s primary reserve currency, the dollar is roughly 60 per cent of global reserves. Demand for US Treasuries remains strong. But foreign holdings of US Treasury securities - including bills, notes, and bonds - have slowly been declining, as tracked by the US Treasury Department’s Treasury International Capital (TIC) system. Total foreign holdings currently exceed $9 trillion, with the largest holders being Japan (around $1.1–1.2 trillion), followed by the UK (around $800–900 billion), and China (around $750–800 billion). Net inflows in recent months are primarily driven by private investors and some official institutions. Also read: How the US government shutdown will affect gold, dollar, bond yield China has been the most notable long-term reducer of US Treasury holdings, after peaking at around $1.3 trillion in the early 2010s. Its holdings have fallen to roughly $750–760 billion. Diversification into gold and other currencies is part of China’s effort to reduce reliance on dollar assets amid geopolitical tensions. Russia’s holdings fell sharply after 2022 due to sanctions following the Ukraine invasion, declining to under $2 billion from tens of billions before 2022. Saudi Arabia and some other oil exporters have occasionally reduced holdings for short-term capital needs and diversification. Switzerland, Germany, and Norway have also trimmed US Treasury holdings in recent months, as have smaller holders like Brazil and Vietnam. These reductions have not led to broader sell-offs, at least for now. In fact, Japan has increased its holdings to record levels of around $1.15 trillion as of 2025. The UK has risen to the second-largest holder of US Treasuries, surpassing China this year, with around $850–865 billion currently. India is reducing its US Treasury holdings India has gradually reduced its US Treasury securities over the past year as part of a broader diversification strategy by the Reserve Bank of India (RBI). Factors include US trade policies, diversification trends, and a preference for gold as a hedge against dollar volatility and inflation. Concerns over US fiscal debt, credit rating issues, and rising yields have also contributed. India's US treasury holdings had peaked in 2024 at $247 billion, but fell to around $220 billion by year-end. Yet, India remains among the top 20 foreign holders of US Treasuries. Also read: Indian rupee slips to all-time low of 90.72 against US dollar India is increasing its gold reserves The RBI has simultaneously increased gold reserves, adding dozens of tonnes in 2025, bringing total reserves to over 880 metric tonnes. Gold now accounts for roughly 14–15 per cent of the RBI’s reserves. Overall, India’s total foreign exchange reserves have remained robust at around $690–700 billion, adequate to cover a large share of imports and external liabilities. Unlike Japan and the UK, India and other BRICS nations have trimmed exposure, often in response to global uncertainties. India's foreign currency assets usually constitute about 80–85 per cent of total reserves, mostly in US dollar-denominated assets such as US Treasury securities, deposits, and sovereign bonds.

US dollar may be facing a slow decline as the world's reserve currency, while gold and silver prices surge. Countries, including India, have trimmed US Treasury holdings. But is it a gloom and doom scenario or a strategic shift? Find out here &nbsp;

Is US dollar dying slowly? This economist thinks so as gold, silver surge, countries including India trim US Treasury holdings

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