Chinese Caution on U.S. Debt Clouds Financing for Trump’s Tax Cut
- News from Beijing may be ‘shot across the bow’ on trade issues
- Trump’s tax plan seen adding $1 trillion to federal deficits
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China could make it harder for U.S. Treasury Secretary Steven Mnuchin to finance budget deficits brought on by President Donald Trump’s tax cuts.
Chinese officials reviewing the nation’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, Bloomberg News reported Wednesday. While it’s not clear whether the talk would lead to any concrete change, the news added to bond investors’ woes as global debt markets were already selling off amid signs that central banks are starting to step back after years of bond-buying stimulus.