Biden announced his intention to cut the US budget deficit by $1.5 trillion
Posted On May 15, 2022
According to the President of the United States, reducing the budget deficit is one of the main ways to ease inflationary pressures .jpg” alt=”Biden announced his intention to cut the US budget deficit by $1.5 trillion” />
The US authorities intend to cut the US budget deficit by a record $1.5 trillion this year. This was stated on his Twitter by American President Joe Biden.
“Under my predecessor, the deficit increased every year. This year we [the administration] are on track to reduce the deficit by $1.5 trillion— biggest one-year cut in history,— he wrote.
Biden stressed that deficit reduction— one of the main ways to ease inflationary pressure.
By the end of 2020, the US budget deficit increased by $3.12 trillion, and by the end of 2021— for $2.77 trillion. In early February 2022, the total US national debt for the first time exceeded $30 trillion, the amount became equal to $30.012 trillion.
Last December, Biden signed into law an increase in the national debt limit by $2.5 trillion to $31.4 trillion. If not for this measure, the funds in the federal budget could run out by December 15, Treasury Secretary Janet Yellen warned.
On May 4, the US Federal Reserve System (FRS) announced the largest interest rate hike since 2000— immediately by 0.5 percentage points, up to a range of 0.75 & ndash; 1% per annum. At the same time, the American regulator pointed to the appropriateness of further tightening of its policy. Thus, in March, the growth rate of prices in the US broke a 40-year record, rising to 8.5%. Nevertheless, inflation slowed down in April and, according to the US Department of Labor, amounted to 8.3%. For 2022, the Fed predicts inflation of 4.3% with US GDP growth of 2.8%.
US Treasury Secretary Janet Yellen said on May 10 that the US labor market may be experiencing the biggest supply-demand imbalance since World War II. Unemployment in the US rose to 6.1% in April from 6% in March, according to the country's Department of Labor. At the same time, in the first quarter of 2022, the US economy shrank by 1.4% year-on-year, according to preliminary data from the US Department of Commerce.
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