CoinDesk Podcast Network Will the US Government’s $345B Deficit Impact Rates? | CoinDesk Daily
Sep 12, 2025
The U.S. faced a staggering $345 billion deficit in August, triggering discussions about its impact on the economy and interest rates. As borrowing costs rise, gold and bitcoin react in intriguing ways. The closure of Christie's NFT department adds more layers to the evolving digital asset landscape. Meanwhile, BlackRock’s potential blockchain products hint at future market shifts and innovations. The interplay between government spending and cryptocurrency continues to spark debates among financial experts.
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Rising Interest Costs Reshape The Budget
- The U.S. ran a $345 billion deficit in August as $344B revenue fell short of $689B spending.
- Net interest hit $93 billion, becoming the third-largest federal expense and showing rising borrowing cost pressure.
Markets React To Fiscal And Rate Signals
- Markets weigh the deficit against Fed actions as rate decisions could be affected by inflation and yields.
- Bitcoin briefly topped $115,000 amid market reactions to macro and fiscal news.
NFT Market Falters As Christie's Shuts Shop
- Christie's closed its digital art department as NFT market activity weakened despite rising sales counts.
- NFT trading volumes fell 45% last quarter to $867 million, signaling reduced market value even with more transactions.