Chris Low of FHN Financial wrote that the US government's latest revenue statement shows why a huge budget deficit is an ominous sign for the economy. He wrote that US revenue increased by $479 billion in the latest fiscal year, but the deficit still rose from $1.695 trillion to $1.832 trillion due to faster spending growth. In addition to higher welfare expenses and domestic investment, interest expenses are also a major factor. Low observed that interest expenses increased by more than 33% in the most recent fiscal year. Lowe found that economists are increasingly worried that deficits will fuel inflation. He wrote, “The huge deficit in response to the pandemic evolved into a huge deficit in the pursuit of industrial policies, and sporadic hundreds of billions of dollars in student loan relief measures have increased the size of the deficit, and there is no clear end in sight.

Zhitongcaijing · 10/21 13:09
Chris Low of FHN Financial wrote that the US government's latest revenue statement shows why a huge budget deficit is an ominous sign for the economy. He wrote that US revenue increased by $479 billion in the latest fiscal year, but the deficit still rose from $1.695 trillion to $1.832 trillion due to faster spending growth. In addition to higher welfare expenses and domestic investment, interest expenses are also a major factor. Low observed that interest expenses increased by more than 33% in the most recent fiscal year. Lowe found that economists are increasingly worried that deficits will fuel inflation. He wrote, “The huge deficit in response to the pandemic evolved into a huge deficit in the pursuit of industrial policies, and sporadic hundreds of billions of dollars in student loan relief measures have increased the size of the deficit, and there is no clear end in sight.