U.S. Treasury Secretary Scott Bessent plans to increase buybacks of long-term bonds, a strategy that echoes Japanese policies and could trigger dollar depreciation. Economist Robin Brooks of the Brookings Institution warns of a risk of dollar « debasement » comparable to the yen’s prolonged decline in recent years. The U.S. budget deficit is expected to reach $2 trillion this fiscal year, with total debt standing at $32 trillion. Precious metal prices have risen as investors anticipate further dollar devaluation, although Capital Economics economists consider these concerns overblown in the near term.
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