budget deficit

IMF Lays Out the Challenges Ahead for Global Recovery

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

U.S. National Debt Is Huge, but It's Not a Catastrophe

True, the U.S. national debt is large and it should be reduced at some point, but does a large national debt doom a nation to economic ruin? Only if you believe that nations like Germany, France, and Japan are economic basket cases too.

State of the Union: Obama Eager to Fix Health Reform Law

In his State of the Union address, President Obama didn't shy away from tackling the ongoing questions about the health care reform law head on. And though he opened with a joke, he made it clear that while he's serious about repairing any flaws in the law, repeal is not an option.

Tea Party Leaders Say They'd Back Defense Cuts

The Tea Party says everything is on the table regarding its goal to cut federal spending and balance the budget -- including defense spending. If the political faction succeeds in cutting military spending, not only would the U.S. economy benefit, national security could well be strengthened.

Getting to Zero: How Congress Could Balance the Federal Budget

It took about 10 years of decisions for the federal budget to get more than a trillion dollars out of whack, and it's going to take at least five years to balance it again. The only way to do it is piece-by-piece, with equal sacrifices from both Republicans and Democrats.

Eurozone Growth Slows as Austerity Takes Its Toll

Economic growth in the eurozone slowed sharply in the third quarter as austerity measures aimed at cutting budget deficits dented the Continent's recovery. Meanwhile, a growing divergence in the economic performance of EU nations is likely to make it tough for the European Central Bank to set its monetary policy.

Budget Deficit Unexpectedly Narrowed in October

The U.S. government started the new fiscal year on the right foot, posting $140.4 billion deficit in October, the first month of the new fiscal year. That was substantially lower than the $148 billion deficit that had been forecast.

Budget Deficit Falls to $140 Billion

The federal government began the new budget year with a deficit that fell 20 percent from a year ago but still the third highest October imbalance on record. The Treasury Department said Wednesday that last month's deficit totaled $140.4 billion, down by $35.9 billion from the record holder for the month, an imbalance of $176.4 billion in October 2009.

2010 U.S. Budget Deficit Comes in Below Expectations

Investors received another sign Friday that the U.S. economy is continuing to heal: The 2010 U.S. budget deficit came in at a smaller-than-predicted $1.29 trillion. Though it was still the second-highest deficit on record, the numbers reflect growth in tax revenues, and thus in the economy.

10 Signs the U.S. Economy Is Still on Shaky Ground

It has been two years since Lehman Brothers went under, sparking the Great Recession. While the banks have done surprisingly well in past two years, the economy is still struggling to recover and millions remain out of work. Here are 10 charts of key economic indicators to watch.

Budget Deficit Dips More Than Expected

Investors received another slice of good news Monday about the U.S. economy: The federal budget deficit for August totaled a smaller than expected $90.5 billion, thanks to rising government revenues due to higher tax receipts from stronger corporate profits.

Could Congress Eliminate the Federal Budget Deficit?

The annual U.S. budget deficit is well over a trillion dollars, and in the long term, that's unsustainable. But a closer look at the sources of most of that gap shows that balancing the budget wouldn't be nearly as hard as it might at first appear.

Public Debt Could Hurt Growth for Years to Come

Andrew Milligan, the head of global strategy at Standard Life Investments in London, says yes. He says that while short-term fiscal pressures are manageable, "there are significant long-term risks from high levels of public sector debt."

Make the Rich Pay Their Fair Share to Balance the Budget

When George W. Bush cut $1.3 trillion in taxes back in 2002, 36.7% of the money went to the top 1% of Americans. If those tax cuts for the wealthiest are allowed to expire, Republicans could get closer to something they claim to want: a balanced budget. So why are they fighting it so hard?

Fed: Outlook 'Unusually Uncertain'

In testimony on Capitol Hill, Fed Chairman Ben Bernanke said that the central bank is ready to act in an economy that is "unusually uncertain." Bernanke's comments seem to have spooked the markets, which dropped precipitously as he spoke before reversing course.

Why Global Deficit Cutting Could Sink Recovery

For Germany, Britain, and the U.S., three of the world's major economies, their lawmakers' rush to cut budget deficits is the worst thing at this point of the fragile recovery. By taking demand out of their economies at this crucial time, they could spark another recession.

U.S. Deficit is Dangerous, Greenspan Warns

Former Fed Chairman Alan Greenspan has spoken out about U.S. budget deficits, warning that if borrowing isn't reined in, America could face a Greek-style debt crisis. He calls for a "tectonic shift in fiscal policy."

U.S. Deficit Falls to $135.9 Billion in May

May%u2019s smaller-than-expected $135.9 billion budget deficit provided further evidence of a healing U.S. economy, but a large structural deficit remains, and will have to be addressed by Congress, according to one budget observer.

U.S. Shouldn't Let Europe's Debt Crisis Go to Waste

The bond vigilantes have made their presence known in Greece, Spain, Portugal, Italy and Ireland, forcing up their borrowing costs and making slash budgets. The U.S. needs to act now to ensure it's not next.

Recession Causes Second April U.S. Budget Deficit in 27 Years

The federal government posted an $82.7 billion deficit in April, only the second April deficit in the past 27 years. Normally, the month sees a surplus due to the Apr. 15 tax-filing deadline. But the financial crisis has squeezed tax revenue.

Five Economic Wishes for 2010

If you could wave a magic wand and do whatever it took to fix the U.S. economy, what changes would you make? These five wishes, if granted, would likely result in good things for U.S. investors and the economy for decades to come.

Monthly U.S. Debt Hits a New Record

The federal government's budget deficit totaled $220.9 billion in February 2010, the U.S. Treasury Department said Wednesday. Although a record amount, it was better then analyst expectations, and revenue rose 23% to $107.5 billion -- the first year-over-year monthly revenue increase since April 2008.

U.S. Posts $42.6 Billion Deficit in January

In another encouraging sign for the U.S. economy, the federal government's budget deficit totaled a lower than expected $42.6 billion in January, largely due to the approaching end of fiscal stimulus spending.