The amount is lower than what they estimated in March.
The Office of Management and Budget said the federal deficit will decline by $1.7 trillion this year, representing the single largest decline in the federal deficit in American history. The office is forecasting that the budget deficit will be nearly $400 billion less than it estimated in March, due in large part to stronger-than-expected revenues, reduced spending, and an economy that has recovered all of the jobs lost during the prior years of the pandemic.
However, the administration expects inflation pressures to remain into 2023.
“The President’s top economic priority continues to be tackling the challenge of inflation, without giving up the historic economic gains we’ve made over the past 18 months,” stated Shalanda Young, director of the Office of Management and Budget.
The OMB’s updated forecast does not factor in the most recent legislative actions, including the enactment of the fiscal budget reconciliation and the Inflation Reduction Act.
As the Lord Leads, Pray with Us…
- For Director Young as she oversees the Office of Management and Budget.
- For members of the Federal Reserve as they assess the state of the U.S. economy.
- For Director Deese and the members of the National Economic Council as they advise the president.
Sources: Newsmax, Reuters, Roll Call
