US Defense Secretary Pete Hegseth has announced plans to reduce defense spending, under orders from the Trump administration, projecting an 8% budget cut for the US military over the next five years. Veda Partners Managing Partner and Director of Economic Policy Henrietta Treyz joins Catalysts to analyze this development and broader federal spending plans.

Treyz describes Hegseth's plans as "completely disingenuous," explaining, "They [Trump officials] could maybe cut around the edges and identify some areas to trim back, but on the other hand and simultaneously, the US Senate is moving forward with the bill that would exponentially increase defense spending."

She forecasts increased federal spending across all sectors, including defense, throughout 2025.

Regarding the Department of Government Efficiency's (DOGE) proposal to distribute $5,000 to each American, Treyz argues this would not help reduce the deficit, noting that stimulus checks represent "a trillion dollar-plus proposition, so the math does not add up."