In a rare moment of fiscal sobriety, Senate Republicans have carved £1 billion from the proposed White House ballroom renovation. The market cheered as the CBO estimated a reduction in the deficit by 0.02% over a decade.
But let’s not break out the champagne just yet. This is a symbolic victory, a rounding error in a government that spends like a drunken sailor. The real story is the signal: the GOP is finally nervous about inflation and gilt yields.
Capital flight from US treasuries has been whispering of unease. This cut is a down payment on credibility. But with $34 trillion in debt, this is a band-aid on a haemorrhage.
The question remains: can they sustain this discipline when the next spending bill comes knocking? Or will the ballroom blitz be a one-hit wonder?
