US President Donald Trump has directed the Treasury Department to stop minting new pennies. He described it as "wasteful" due to the high cost of producing the coins. Trump posted on his Truth Social network, stating, "For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies."

Focus on Cost-Cutting

The Trump administration has been focused on cutting government spending. In line with this, the president has targeted several federal agencies and dismissed many workers. Trump emphasized, "Let’s rip the waste out of our great nation's budget, even if it’s a penny at a time."

Super Bowl and Treasury Issues

Following the Super Bowl in New Orleans, Trump shared his concerns about the Treasury Department. On his way to the game, he informed reporters that Elon Musk’s department of government efficiency (DOGE) had found irregularities at the Treasury Department. He remarked, "There could be a problem, you’ve been reading about that, with Treasuries." However, it remained unclear whether he was referring to US government debt or other payments.

Possible Debt Reduction

Trump further suggested that these irregularities could mean the US has less debt than originally thought. "That could be an interesting problem because it could be that a lot of those things don’t count," he said. Recently, DOGE had requested access to Treasury payment data. Musk’s focus has primarily been on payments to contractors and grant recipients, not bondholders.

Review to Cut Deficits

Additionally, a Trump official confirmed that the review of Treasury payment systems by DOGE aims to help reduce future deficits and national debt. However, a federal judge temporarily blocked DOGE from accessing Treasury data. The judge also ordered the destruction of the information they had gathered, following a lawsuit from several US states.

Interest Rates and Debt Yield

Lastly, Treasury Secretary Scott Bessent emphasized that the yield on 10-year government debt is a key factor in Trump’s goal of lowering interest rates.