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The United States cannot sustain deficits at current levels, spending has to be tackled, US Treasury Secretary Mnuchin told CNBC on Thursday on the sidelines of the World Economic Forum in Davos.

“The US will have to slow down the rate of growth of government spending over time,” Mnuchin added. “Trump administration does not believe there should be carbon taxes, believes companies can deal with climate issues on their own.”

Market reaction

Markets largely ignored these comments and the 10-year US Treasury bond yield was last down 2% on the day at 1.738%.