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flag U.S. faces $2.4 trillion budget deficit hike over decade, driving up long-term interest rates to 5%.

flag The U.S. budget deficit is projected to rise by $2.4 trillion over the next decade due to Trump's "big beautiful bill," which includes tax cuts and other legislation. flag This increase is causing long-term interest rates to rise, with the 30-year Treasury yield reaching 5% in May 2025, a level not seen since 2007. flag Higher interest rates are making mortgages and business loans more expensive, potentially slowing hiring and economic growth. flag The Federal Reserve has limited ability to control long-term rates, so the impact on consumers may persist despite any rate cuts. flag This situation also raises concerns about long-term inflation and the future value of dollar assets.

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