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Domestic currency policy

Trump Halts US Penny Production

Analysis based on 27 articles · First reported Feb 10, 2025 · Last updated Feb 11, 2025

Sentiment
20
Attention
4
Articles
27
Market Impact
General
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The potential halt in penny production by the United States — United States Department of the Treasury, as directed by Donald Trump, could lead to minor cost savings for the United States government and potentially streamline retail transactions. While not a major market mover, it reflects a broader focus on fiscal efficiency.

Government Retail

President Donald Trump has directed the United States — United States Department of the Treasury to stop minting new pennies, citing the rising cost of production, which exceeds the coin's face value. The United States reported a loss of $85.3 million in fiscal year 2024 from producing nearly 3.2 billion pennies, with each costing approximately $0.037. This move aligns with Donald Trump's administration's focus on cutting costs, a sentiment amplified by Elon Musk's 'Department of Government Efficiency' (DOGE) which highlighted the penny's expense. While the authority for a unilateral halt is debated, with some suggesting it may require an act of Congress, past legislative efforts by figures like Mike Enzi and John McCain indicate a long-standing bipartisan interest in discontinuing the coin. Other countries, such as Canada, have already phased out their lowest-denomination coins.

90 United States reported loss
60 Elon Musk highlighted cost
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Robert K. Triest, an economics professor, provided an opinion on the legal ambiguity surrounding the discontinuation of the penny, suggesting the Secretary of the Treasury might have the authority.
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Mike Enzi, a former Senator, previously introduced legislation to suspend penny production, indicating a long-standing debate on the issue.
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John McCain, a former Senator, also introduced legislation to halt penny production, showing bipartisan support for the idea in the past.
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Scott Bessent secretary United States — United States Department of the Treasury Scott Bessent serves as the Secretary of the United States Department of the Treasury, acting as the principal economic
Scott Bessent related Canada
Scott Bessent treasury secretary Donald Trump Scott Bessent serves as Treasury Secretary under Donald Trump, defending the president's policies and executing his dire
Scott Bessent related Elon Musk
Canada strained-ally United States Canada faces an unprecedented diplomatic and economic crisis with the United States, characterized by a massive tariff w
Canada related Donald Trump
Canada related Elon Musk
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