The Congressional Budget Office (CBO) substantially revised upward its estimate of the U.S. budget deficit for 2024, raising it to $1.9 billion from its previous estimate in February of $1.5 billion. It also raised its forecast for the deficit-to-GDP ratio to 6.7% from 5.3%. The revisions come after the CBO incorporated recent increases in government spending. These include President Joe Biden's student loan forgiveness plans, which added $145 billion to the deficit, aid to Ukraine, Israel and Taiwan, which increased discretionary spending by $60 billion, a $70 billion reduction in the estimated amount the Federal Deposit Insurance Corporation will recoup from payments made to cover bank failures in 2023 and 2024, and an increase in estimated Medicaid spending. Speaking this week, Fed officials John Williams and Neel Kashkari both said that for inflation to reach its 2% target range could take another year or two.
Ballestas Group
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