Trump admin orders Pentagon to prepare for 8% budget cuts – report

It’s not often that you see the United States cutting military spending. I don’t think too many people had that as a baseline scenario to pay for corporate tax cuts, but it would go a long way. Trump certainly didn’t campaign on it but he may be trying to keep the hawks happy by shifting some of those military orders to the books of allies in a push for increased NATO spending.

We will see what actually comes to pass because it’s Congress that controls the spending. The cuts would be over 5 years, according to the report.

“Defense Secretary Pete Hegseth has ordered senior leaders at the
Pentagon and throughout the US military to develop plans for cutting 8
percent from the defense budget in each of the next five years,” citing a memo.

Shares of Lockheed and RTX don’t seem to be too bothered and Palantir is still trading at 100x sales.

This article was written by Adam Button at www.forexlive.com.