COTD: U.S. Budget Deficit

COTD = Chart of the Day

#CKStrong

Go Carol K!  The doctors are stunned at her fight and grit.  So are we.  We want some. 

Looks like the U.S. budget deficit is going to come in around 12 percent of GDP for Fiscal 2021, which puts it in WWII territory.   The only possible way Inflation will be “transitory” (the Ice Age was transitory, by the way) is the deficit is slashed in half over the next few years but that will be painful. 

Will the Fed stop enabling the Treasury with its bond purchases? 

No doubt policymakers did the right thing throwing everything and the kitchen sink at the COVID collapse, which helped avert another depression but the exit is always the problem and will be very painful when/if normalized. 

The FOMC members talk a good game about having all the tools to reign in inflation but do they have the stomach?  Doubtful.      

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1 Response to COTD: U.S. Budget Deficit

  1. Pingback: Think Big: State Of The Global Supply Chain & Inflation | Global Macro Monitor

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