The US Congressional Budget Office trimmed its 2014 fiscal year forecast to a deficit of $560B compared to $616B previously. The changes are because they assume the sequester cuts will still be in place — that’s doubtful.
What’s impressive is how close the US is to fiscal sustainability, and that’s a big potential plus for the US dollar. The CBO says that under current law the deficit-to-GDP ratio will fall to 2.1% of GDP by 2015. Certainly spending will be higher so that’s a fanciful estimate but it shows how close the US has come to a balanced budget.
