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What Meta’s new teen restrictions mean for young people

You know that it can be difficult to enforce screen time limits on teenagers if you’ve ever told them to stop using their phone.
Meta now has reached a settlement with the Department of Justice that will affect how teenagers use Facebook and Instagram in many parts of America.
The agreement was approved by a judge on August 27. Meta has agreed to limit teens’ use of Facebook, Instagram and other social media sites by default for two hours per day. Meta will restrict access to most apps overnight. Parents will also have more control over the settings that teens might want to alter.
This agreement is more than just a reminder to limit screen time. What will change? How do the time limits work? And what did Meta tell CyberGuy about it all now.
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A TOP HEALTH PROFESSIONAL WARNS THAT TOO MUCH SCREEN USE MAY CAUSE LONG-LASTING DELAYS IN THE BRAIN
Meta’s New Restrictions Could Change a Teen’s Day
The agreement has now been approved by the court, and the protections are being implemented over the next few months. The deadline for most major requirements is six months, but some are earlier. The biggest changes for parents and teens are outlined below.
Facebook and Instagram have a two-hour time limit
Meta’s default daily time limit will be two hours for Facebook combined with Instagram. Scrolling time on any app is included in the daily limit. Meta will also count the usage of multiple accounts if it detects a teen operating more than one.
The two-hour time limit does not apply to direct messaging, settings or qualifying audio and video. According to the agreement, long-form audio and video content is defined as any audio or videos that are at least 22 mins in length without being artificially prolonged.
The parent must give permission for a teen to stop the limit. This is a more effective way to stop teen driving than a simple reminder.
Night Mode blocks most overnight use
From midnight until 6 am, Night Mode blocks most Facebook and Instagram activities. Teens will not be able view, or even post, to feeds, stories, explore, or reels.
The direct messaging service will continue to be available. This exception allows teens to continue communicating with their friends and families. This could help families who are dealing with the problem of late-night scrolling. It would also allow them to set a boundary that is clearer without having to adjust it every night.
Meta disables push notifications from midnight to seven in the morning, with exception of urgent platform or account integrity or security alerts. The setting can be changed by parents using supervision.
Reduced School Mode notifications
School Mode focuses on daytime distractions. Meta mutes most notifications between 8 am and 3 pm, Monday to Friday from August 15 through June 15.
Teens will be able receive messages directly. Meta allows account alerts and security during these hours. It’s a simple idea. The school day is a time when there should be fewer excuses to check Instagram and Facebook.
Every 15 minutes, screen-time reminders appear
Meta will add frequent reminders. Teens receive an alert after 15 minutes of screen time spent on Facebook or Instagram. Meta will also send alerts to teens when their daily usage reaches 90 minutes, and 60 minutes.
This settlement stipulates that these prompts or pauses must be put into effect within four months after the effective date of the agreement.
These alerts are sent before the teen has reached his or her two-hour time limit. The hard cap is now the last warning rather than the initial one.
The Teenagers have more Control over What They See
A few other aspects of viewing have also been altered by the agreement. The default feed for teens will not be personalized. This feed won’t use Meta’s recommendations when choosing what to display next.
The setting will only be available to parents who use supervision. Meta will remind teens of this option periodically. Teens will also be able turn off the autoplay. The parents will also be able require this setting. When autoplay is disabled, another content piece will not start automatically. To continue, the teen must tap or swipe.
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The Likes filter and the appearance filter also changes
Meta hides like and response totals for teens by default. This applies both to the teen’s posts and content from other users.
Meta is expanding restrictions to include appearance filters. Meta has already banned teens from using filters for cosmetic surgery. Teenagers will lose their access to extreme makeup filters, as Meta refers them. The changes are aimed at parts of social media that focus on social interaction and appearance.
Meta plans stronger age checks
The age verification is at the heart of this protection. The platform can only set a teen-only limit if it correctly identifies who is behind the account.
Meta will be investing in better technology that can identify accounts belonging to minors. It also intends to upgrade systems to identify those users aged 13-17 who have entered an adult birthdate. Meta can then place those users into content designed for teenagers once it has identified their accounts.
Age detection is still one of the most important tests to come. If a system regularly misidentifies teens as adults, it could undermine many of the agreements protections.
More alerts, controls and notifications for parents
Meta plans to also expand its parental monitoring tools. Parents will be notified when their teen connects a second account. It also intends to send alerts regarding interactions between accounts that it deems suspicious.
Parents will also receive periodic updates on their teenager’s use and any attempts to alter protective settings. These alerts may make it easier for parents to keep track of changes in a teenager’s account without having to constantly check their accounts.
Meta’s Teen Accounts has already laid down the foundation
Meta launched Teen Accounts by 2024. These accounts provided automatic protection to Instagram’s younger users, and gave parents more control. Meta expanded the teen-safety approach to other services.
CyberGuy covered Meta’s Teen Accounts for Facebook Messenger. The earlier tools relied more on configurable controls and reminders.
The settlement, by comparison creates more defaults. Teens who reach the combined two-hour limit must ask their parents for permission before they can turn off the device. If “five minutes more” turns out to be an hour in a family, it could make a big difference.
TikTok, YouTube and Meta are linked to each other’s payments
Meta refers to the package of financial aid as being approximately $18 billion. The participating states will receive approximately 70% of the payment allocated, which is roughly $12.7 billion over 10 years.
TikTok’s and YouTube’s ability to meet two requirements will determine the remaining 30% of revenue, or about $5,3 billion. Both companies must implement an hour-long Daily Limit and Night Mode, as well as age assurance measures. Each company would then be required to pay a similar amount.
The other half would depend on TikTok. TikTok would be responsible for the other half. Meta claims that limiting teens to one app has little impact when they are able to switch over immediately. This helps to explain why Meta’s two biggest competitors play such an important role in this agreement.
Snap is also included in the agreement. Meta has explained publicly that the requirement for a matching payment is only applicable to TikTok, YouTube and other video-sharing apps.
Meta demands an industry-wide strategy
Meta replied to CyberGuy by providing additional information on the agreement. This included an open letter urging TikTok, YouTube and TikTok to adopt the framework. Meta says that teens frequently switch between apps. Therefore, similar protections should be extended across the entire industry.
Meta Chief Legal Counsel C.J. Mahoney repeated the argument in a statement on camera provided by CyberGuy. He stated, “Because teens are moving fluidly between dozens of applications, we need a solution that is industry wide.”
Mahoney called for TikTok to immediately implement the framework. Meta’s arguments are easy to comprehend from the parent’s perspective. Some teens might simply switch to another platform if Instagram shuts down after 2 hours, while other social platforms remain open.
This position helps to explain why TikTok, and YouTube have such an important role in the financial structure of the settlement.
If other platforms are added, the limits will be tougher
Under the agreement’s more general industry adoption framework, participation from Snap TikTok YouTube may trigger a stricter Meta limit. Most of the provisions in the agreement must remain in effect for a period of 10 years. Meta’s Time Limits and Night Mode obligations initially ran for five years.
If other industry players join in, the commitments will be extended to 10 years. The defaults will also get more severe.
Meta states that the Daily Limit will be reduced to an hour for each app. The Night Mode will expand to include 10 pm through 7 am instead of midnight until 6 a.m.
The participation of Meta’s competitors could alter the strength and length of restrictions.
Meta asks app stores to be involved with age verification
Meta claims that social media platforms shouldn’t be responsible for the age verification process. App stores are supposed to provide verified information about age for developers, according to the company. Meta says that this could make it easier for apps to apply age-appropriate restrictions more consistently.
Meta supports legislation that requires app stores to confirm a user’s age before they allow a teenager to download an app. This debate will become more important as platforms begin to implement age restrictions.
Meta will be audited by independent auditors
A third party will also be overseen by the agreement. A Meta auditor who is independent will check Meta’s conformity and provide a report to the participating states. These reviews will be done annually over a period of five years.
Meta states that the agreement also creates an independent foundation for social media research. According to Meta, it will give the foundation consented-to user data for research on teen wellbeing. This outside evaluation could show if the protections are effective once they have reached millions of accounts.
Protect your teenager right away with these tips
On August 27, a judge approved the settlement. Families can check their teens’ social media settings now, even though the new rules will be implemented over the next few months. Start with these places.
Meta Parental Control Tools: Setup
Meta’s tools for supervision give parents additional control and access to account information. Parents can manage safety features and review the available settings once supervision has been connected. CyberGuy has a guide that shows you how to link and activate Instagram’s parent supervision tool. Talk to your teenager about what settings you want them to use before making any changes. What do you wish to protect?
2. Check the actual screen time
Compare the screen time numbers on your phone. It may surprise you to learn that Instagram and Facebook take up much less time than anticipated. You may find that another app is responsible for much more of your day. Use these numbers to determine the limits that are appropriate for how your phone is being used. CyberGuy offers a more detailed guide on phone safety for parents that includes screen time controls.
Re-examine privacy settings and your contact information
Check who is able to follow, tag or message your teenager. Meta has confirmed that it will keep the default settings for Instagram accounts of teens private. Facebook also keeps restrictive default settings. The company will also make it more difficult for adults who may be suspicious to interact or find younger users. Review followers that your teenager no longer recognises.
Check the content settings
Meta states that teens’ content will be set to age appropriate settings as a default. It also intends to restrict interactions with accounts that it deems inappropriate for young users. If you are using parental controls, make sure to check them periodically.
You can also use the phone’s controls.
Facebook and Instagram are only a small part of the digital life of teens. Apple Screen Time or Google Family Link allow you to set device-specific limits. These controls are especially helpful when teens switch from one social media app to another. Parents can set up boundaries beyond Meta platforms.
6) Establish a phone routine for the evening
Meta’s Night Mode adds an overnight barrier within Facebook and Instagram. You can also add an extra layer of protection by keeping phones in shared spaces or charging them outside the bedroom. Simple routines can reduce nightly arguments over the time the phone is turned off.
These restrictions may affect teens as well as parents
It is likely that the two-hour limit will be most popular because it provides a clear stop point. The biggest change is likely to be the number of protections that will automatically start on.
Teens may experience more interruptions when scrolling through feeds, less time to surf the web at night and less notification pressure during school hours.
The parents will be able to see when their teen is trying to alter certain settings. Meta, meanwhile, will be subject to independent compliance checks during part of its agreement period.
The challenge of age detection is still a major one. Many of these safeguards can be easily avoided if a 15 year old is able to convince the system an account belongs an adult. The rollout of the system will reveal much more about the situation than just the announcement.
Kurt’s main takeaways
Since years, I’ve watched as social media platforms have added parental controls. A recurring issue is that parents have to locate the parental controls in order for these tools to be helpful. By default, this agreement provides more protection. The two-hour time limit, which requires parental consent to remove, feels different than another screen-time reminder. This overnight ban could give families a little extra security when scrolling late at night becomes an ongoing battle. Meta has a valid point about TikTok, and I can understand that. Teens may just move to another feed if one app shuts down while others remain accessible. The real test will come as the protections are rolled out in the next few months. Meta’s ability to identify teen accounts accurately and the difficulty of bypassing these limitations is what I am interested in. These tools should be viewed by parents as backups, and not automatic pilot. Setting can be useful in creating boundaries but the conversation at home is still going to have to do most of the work.
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Do you think that every social media application should automatically block teens after a certain amount of time? Or, do families have the right to decide these limits for themselves? Write to us on Cyberguy.com.
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DLSS 5 scaling technology was tested in the NFS Heat race at 60 FPS in 1440p.

The graphics benchmarks were conducted by enthusiasts using NVIDIA’s DLSS5 neural network rendering at 1440p. Testers were primarily interested in evaluating the nighttime ambience, street neon, and dynamic lighting of Palm City. Project was ran at 60 FPS target frame rate, which allowed for detailed analysis of geometry, contact shadows and artificial headlights scattering on wet surfaces.
The testing was performed on a computer that had the most recent hardware configuration. This system consisted of a 14-core Intel Core i5-13600KF, a GeForce RTX-4070 SUPER discrete graphics card, with 12GB video memory and 32GB DDR5 DDR5 RAM running at 6000MHz. It also included an ASRock Pro RS motherboard as well as a 2TB Crucial P5 PLUS solid-state drive. Gigabyte UD850GM power supply with 850W. This image was displayed on a Lenovo Legion 27″ OLED monitor, with a refresh of 240Hz.
Implementing DLSS 5 algorithms removed the defects in the TAA antialiasing. They also eliminated pixel flickering and restored the clarity of texture on the road surface. The neural network filters reworked reflection structures in paints and puddles to make light and shadow transitions physical correct. Hardware handled the tensor blocks calculations without input or frame rate lag.

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US envoys Kushner and Witkoff arrive in Kyiv after talks with Putin

US negotiators Jared Kushner, Steve Witkoff and others have arrived in Kyiv to continue discussions on ending the conflict in Ukraine.
Volodymyr Zelenskyy, Ukraine’s President, met with the two in Sophia Square in Kyiv, right in front of Kyiv’s Saint Sophia Cathedral. Zelenskyy hugged Witkoff and said: “It is good to see Steve.”
It is located a few hundred meters from Ukraine’s SBU Intelligence Agency, the site of a drone attack by Russia on Friday. This marks an intensification in a war that has lasted for over four years.
Witkoff & Kushner meet Zelenskyy a day after meeting Vladimir Putin, the Russian president for three hours in Moscow.
It is the first time that US envoys are visiting Ukraine. They have been to Russia before. This trip represents a new level of effort to bring an end to the conflict in Ukraine. However, details about any possible peace plan remain unclear.
According to reports, British national security advisors as well as French and German ones were in Kyiv Sunday morning before Witkoff’s and Kushner’s arrival.
The talks between Russia and Ukraine to end the war focused on Washington’s and Kyiv’s 20-point plan, which was presented in December. The two sides are unable to find common ground in several key issues, such as control of the east Ukraine territory.
An official from the White House said that on Saturday, the discussions with Moscow “discussed substantial plans for the next steps” to end the war. He said that an announcement will be made in the upcoming weeks.
Yuri Ushakov, a senior Kremlin aide, described the discussions as “extremely frank”. He said that there was an acknowledgment of the necessity to deal with “the roots of the conflict”.
Moscow and Kyiv agreed to abstain from striking each other’s capitals for three days in order to facilitate the negotiations. Zelenskyy stated on Sunday the Russian attacks on Kyiv’s main airports Friday night had thrown the US delegation’s plans to travel into Moscow out of whack.
Since Russia’s full-scale invasion began in February 2022, Ukrainian airspace is closed. Some visiting dignitaries travelled by land from neighboring countries.
Kyiv, and its surrounding area have been bombarded by daily drone attacks for over a week. This is the longest sustained assault on Ukraine’s Capital in recent months.
Capital now enjoys a respite from the strikes and alerts for air raids which had been a regular occurrence. However, other parts of country continue to be hit. Ukrainian authorities announced on Sunday at least 8 people had been killed in Ukraine and 69 others injured during the last day.
Ukraine faces a severe shortage of Patriot missiles made in the US that are capable of shooting down any incoming threats. Recent Russian attacks have involved new jet-powered drones capable of speeds up to 250mph. This makes them difficult to intercept.
The war has been going on for five years and many Ukrainians worry about what the winter will bring. Serhii Bekskrestnov is Zelenskyy’s adviser on defence technology. He told The Guardian this week that the government could consider evacuating older people from Kyiv because Putin has ordered Russian forces to “prepare for and execute mass strikes” against Ukraine’s energy infrastructure.
In recent weeks, Russia and Ukraine increased the use of missiles with long ranges to undermine morale within their respective countries.
Illia Dadik has done additional research

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AfD on track for first far-right postwar majority in Saxony-Anhalt

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A political earthquake has erupted in Germany’s East as young and working class voters are expected to give the extreme right Alternative for Germany party (AfD), a historic victory in the state elections held in Saxony Anhalt on Sunday.
AfD – which Elon Musk famously supported in the national elections last year – has been accused by Germany’s intelligence service of being pro-Russian and a right-wing extremist effort. It has a chance to be the first non-mainstream party to gain an absolute majority in the German Landtag since World War II.
Daniel Schatz is a foreign policy author and expert with a PhD in Political Science from Berlin’s Humboldt University. He told Fox News Digital that Saxony Anhalt was important because the AfD no longer only knocks on the power door. The AfD may even be on the verge of opening it.
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Since 1949, no other minor party has led a governing coalition in Germany.
Janek Treiber is a political scientist at Dresden University of Technology. He told Fox News Digital, “you cannot underestimate the symbolism this will give.” It is a symbol of the loss of control by these right-wing parties that have ruled Germany or its East since 1989. Now they lose power. This is much more powerful than saying that the AfD would change something or other in their local university or school system.
Schatz called the AfD a “nationalist, antiimmigration far-right party that is a powerful tool for voters’ anger against Germany’s political establishment – especially in former East Germany.” The AfD campaigns to tighten immigration and place a greater emphasis on German identity. It also rejects much of the environmental agenda, as well as taking a more lenient stance toward Russia.
Even in Germany’s 6th smallest state an outright victory for the AfD would be enough to break the “Brandmauer” or “firewall” of the political establishment. Other parties are unwilling to cooperate with AfD. The AfD is the official opposition party and the second largest party in Germany’s Bundestag. It won 20,8% of votes in the federal elections in February 2025.
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Alice Weidel of the AfD, national co-chair for Germany, spoke out in an interview with German television ZDF. She said, “Illegal immigration, open, unchecked borders, anyone could get into.” Our internal security suffers. “People are truly fed up of this situation.”
Weidel continued, “The reason that caused their exodus no longer exists. All Syrian refugees’ protected status must be revoked.” They must go back to their home country. “If they do not leave on their own, they will be forced to go. We must stop naturalizing the people that should be leaving Germany. “We have Islamization.”
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The German Federal Office for the Protection of the Constitution, or BfV, classified the AfD in May 2025 as an “extremist right-wing group” citing its “anti-migrant stances and ancestry based definition of German Identity.” According to Deutsche Welle in February of this year, the German Federal Office for the Protection of the Constitution (BfV) put the AfD’s classification on hold after “Judges determined that although there were evidence of potentially constitutionally unconstitutional policies and statements within the AfD… there was not enough evidence to classify the party as an extremist”.
The German Chancellor Friedrich Merz told the state broadcaster ARD that he could not imagine foreign investors participating in a groundbreaking ceremony in Saxony-Anhalt with an AfD minister-president in order to establish new factories and businesses. However, this is a matter for the voters of Saxony-Anhalt. If things go as we fear, the state could suffer significant damage.
Ulrich Siegmund, the AfD candidate for Saxony Anhalt in the lead position has not been affected by this. He has over 700,000 TikTok followers in a state with just under 2 million residents.
A report by the Center for Strategic & International Studies said Siegmund’s “polished appearance, professional tone, and radical requests blend together with footage of a politician who is community-oriented responding to questions from the audience… the AfD’s physical presence on the street and omnipresence within the media help to push the populist us versus them’ narrative: the AfD will be there for you and the other parties won’t.
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The independent and non-partisan German site Wahlrecht.de tracks polls for federal and state elections. Ahead of the vote on Sunday in Saxony Anhalt, AfD has a lead of 41%-23% over CDU. Three left-wing parties are also ahead. To control the parliament and appoint a State Minister-President (basically a Governor), a party or coalition must have at least 50% of seats. How can a 43% party win a general election? This is due to Germany’s special election system.
Schatz affirms that “German voters vote twice,” “one for the local candidate, like choosing your Congressman and another for their party. This second vote is what counts. This vote determines the number of seats that each party will have in Parliament. There is one caveat, however: “Any parties that fall below 5% get nothing — zero seat — and these votes are effectively thrown away. Several smaller parties hover right on that line. If they don’t make it, 42 or 43 percent of votes can be translated into over half the seats. In Saxony Anhalt, the AfD could be in power even though a majority of voters did not vote for them. This would be the first time in Germany since World War II.”
CSIS said that voters were drawn to AfD because of its extreme ideology. More than 60.5% AfD supporters hold an extremist right-wing worldview… At same time, over two-thirds of AfD members believe that the party is not far enough away from extremist right-wing positions. AfD has also tripled their results in the last three years among those aged 18-25.
Treiber stated that economics are pushing young voters towards the AfD due to increasing expenses and unemployment. The younger voters, he said, are also “sort of polarized” because some of them vote for Die Linke (the left-wing party in Germany).
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Saxony Anhalt could be just the beginning of the rise of the anti-establishment movements. In two weeks, voters in Mecklenburg/Western Pomerania will be voting. This is where Angela Merkel, the former chancellor, grew up, and started her political career. According to polling data by Wahlrecht.de, the AfD leads the SPD in Mecklenburg-Western Pomerania 35%-32%.
In Berlin, voters will also be voting in just two weeks. According to recent polls, Die Linke, a far-left party, is tied with the CDU on 20%. The AfD comes in second at 18%. Both the SPD and Greens are around 15%. The AfD is a party that has a majority in former East Germany. However, it also holds 15 out of 96 German seats at the European Parliament.

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Huawei Mate XT 2’s privacy screen will be better than Galaxy S26 Ultra

Huawei Mate XT 2 privacy screen will use a brand new technology that maintains content quality, unlike Galaxy S26 Ultra.
Tipster DigitalChatStation stated that the Mate XT 2 privacy screen is independent RGB pixel driver with no impact on content. The tipster also said that Samsung’s privacy screens are different, and can affect the display when enabled.
Privacy screens are hardware upgrades to OLED panels. They reduce the visibility of content when seen from the side. The privacy screen is intended to safeguard users’ personal information. The percentage reduction in visibility will be dependent on distance. Still, it’s quite effective technology.
Samsung introduced the first privacy screen on its Galaxy S26 Ultra. Reviewers gave it full marks but some users were concerned. Low brightness and low contrast caused eye fatigue and strain.
Huawei Mate XT 2 uses a dual-pixel system with independent pixel settings for normal and privacy screen modes to resolve the issue. The brightness and contrast will be maintained in both modes.
The Mate XT 2 also uses the high precision hinges of the latest generation and will fold inward. The first-generation Mate XT was folded into a Z shape, with a single screen.
The new model will fold inward and have an additional display for interaction on the front cover. Huawei’s previous teaser suggested that this tri-fold has been subjected to rigorous tests in order to guarantee durability.
Huawei Mate XT 2, which will be available in three different storage sizes: 512GB (1TB), 2TB (2TB), and 16GB RAM, comes with 16GB of RAM. The Mate XT 2 will come in black, white and purple, with an interesting back panel design.

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Trump keeps heralding an economic boom, but even a solid jobs report is causing problems for him

WASHINGTON, D.C. (AP) – President Donald Trump spent the last 20 months making promises that America would soon experience a boom in its economy. Trump was frustrated by Friday’s positive job report.
Trump and his supporters might have welcomed the August jobs numbers after months of slow hiring and inflation concerns that have weighed on them two months before Election Day. Trump, speaking in the Oval Office instead went into an angry tirade about interest rates and inflation. Trump’s anger was directed at financial markets, Federal Reserve officials and U.S. trading partners. He criticized the widely accepted economic notion that the unexpected gain of 162,000 new jobs in August might contribute to inflationary forces.
Success does not lead to inflation. Trump raged at the Oval Office that stupidity is the cause of inflation. He called it “crazy”, as the stock market fell on Friday due to inflation fears.
Trump’s pledge to unleash unprecedented levels of growth has been plagued by a combination of lower hiring rates and rising prices during his second term. Trump stated at a rally in North Carolina on August 20, 2024, “When I am elected we will instantly begin a new Trump economic growth.” The economy is growing at a slower rate than during the Biden Administration, with an average of 2% per year.
Trump said on Twitter that he could stop trade with other countries to retaliate for his failure to achieve stronger economic growth. The rates have been rising in response to the persistently high levels of inflation caused by Trump’s trade tariffs, and shortages of oil due to his war with Iran. Rates on 10-year U.S. Treasury notes rose on Friday to 4.79%. The debt now exceeds the 40 trillion dollar mark.
Trump’s credibility has been questioned on his economic policies
The president’s ability to lead the largest economy in the world has been questioned by some due to the failure to deliver on the growth promised. He wants to put the blame for high rates of interest and inflation on other people, but his own policies are partly responsible.
Joe Brusuelas is the chief economist of the RSM US consultancy. He said that the administration’s credibility has been damaged by the unrealistic predictions made about growth, inflation rates, and debt dynamics.
The Fed could increase inflation if it did what Trump asked and cut the benchmark rate to allow more cash into the U.S. Economy. This would only make his economic and political problems worse.
The president, however, disputed the concept of monetary policy. The president said that if rates were lower, the gross domestic product could grow by “12 to 14, 15 percent”
Trump stated that “we could achieve a GNP which would surpass every record”.
According to a poll by The Associated Press and the NORC Center for Public Affairs Research, the president’s economic approval rating was a mere 32% at the beginning of summer. In 2018, when Republicans faced midterm elections under Trump, Trump’s economic approval rate was at 50%.
Trump’s threats to halt foreign trade may hurt growth and further damage his rating. Trump’s recent tariffs on Canada are causing problems for Republicans running in Maine and Michigan Senate elections.
Trump’s aides predict a better future thanks to AI, tax cuts and tariffs
Officials from the Trump administration claim that their policies are working according to plan. The development of artificial intelligent will boost productivity and growth, they say. The tariffs imposed last year should have led to more manufacturing jobs in America. Trump’s tax cut will encourage more investment, and the administration’s effort to detect fraud will save taxpayers money.
Christopher Phelan is the chairman of White House Council of Economic Advisers. He said: “I anticipate higher growth.” We’re working hard to bring about good results.
Phelan stated that recent job growth has been two-times larger than needed to keep up with population growth. It is possible, he says, that productivity increases could boost overall growth in the coming years. However he acknowledges that this might not solve the entire country’s fiscal challenges.
Growth alone will not reduce the budget deficits in a meaningful way because Social Security and Medicare costs are increasing faster than revenue.
The growth rate alone is insufficient to eliminate budget deficits
Ernie Tedeschi is the head of Stripe’s economic research and insights. He says that a 3% annual growth rate in the U.S. economy would be sufficient to stabilise the debt burden for the federal government.
Tedeschi stated that he’d be “thrilled,” if AI helped to bring about such gains in 10 consecutive years. However, history has shown that such growth was likely “wildly unrealistic” due to advances in computers.
Tedeschi stated that “we should not plan for an optimistic scenario at all.”
The Trump administration spent most of the week prior to the President’s Friday comments on interest rates trying to boost voter confidence in the economy.
Treasury Secretary Scott Bessent promoted specifically the benefits of stronger economic growth during the G20 Summit for Finance Ministers in North Carolina. Howard Lutnick, Commerce Secretary at the G20 meeting on innovation, did likewise.
Bessent said in an interview with AP that he is also working on a plan “to bring down the debt and deficit level.”
It is risky to try to reduce the annual budget deficit, which is expected to reach $3 trillion in a decade. The path of the budget deficit will likely affect interest rates. However, there may be some political challenges in terms of tax increases and spending cuts.
Brusuelas is the Chief Economist at RSM US. He stressed that Trump will likely have to sacrifice to address debt in a meaningful way and reassure the financial markets.
He said: “We must have a slower rate of growth for government expenditures, which includes a reduction in outright spending and tax hikes that would all reduce the deficit and interest rates.”

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