President Trump's administration is facing scrutiny over fiscal transparency and trade policies as it begins its second year. The White House missed a key deadline to submit its budget proposal for fiscal year 2027, raising concerns about the administration's approach to the national debt, which currently stands at $38.5 trillion, according to Fortune. This delay coincided with other significant economic developments, including potential shifts in trade relations with India and Indonesia, and discussions surrounding the privatization of Fannie Mae and Freddie Mac.
The Budget and Accounting Act of 1921 mandates that the White House submit its budget proposal on the first Monday in February. While delays are sometimes accepted during transitional years between administrations, 2026 is not one of those years, Fortune reported. The delayed filing has added to existing worries about the seriousness with which the White House is addressing the nation's fiscal situation.
In other economic news, President Trump announced a potential trade deal with India that would lower tariffs to 18%, NPR reported. This announcement comes as Indonesia is taking steps to protect its textile industry from potential tariffs from the U.S. and growing regional competition.
Indonesia plans to establish a new state-owned enterprise (SOE) to rejuvenate its struggling textile and garment industry, according to Fortune. Airlangga Hartato, Indonesia's coordinating minister for economic affairs, announced the decision on January 14. The SOE will be under the control of Danantara, Indonesia's sovereign wealth fund, which will invest up to $6 billion into the firm to produce new technology and expand exports. This move is intended to shield the industry from the potential impact of U.S. tariffs and competition from countries like China and Bangladesh.
Meanwhile, the possibility of privatizing Fannie Mae and Freddie Mac is being discussed, NPR reported. Federal Housing Finance Agency (FHFA) Director Bill Pulte and Trump are promoting the idea of a partial sale of the government-controlled mortgage giants. Critics are concerned that unwinding the 17-year federal conservatorship of the two firms could be risky. Fannie Mae and Freddie Mac underpin roughly 70% of U.S. home loans.
Adding another layer of complexity, Fortune reported on the emergence of a memecoin associated with Trump. The Trump coin reportedly crossed $1 billion around the end of a DJ set by Snoop Dogg.
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