Biden’s budget expects cooling economy, stubborn inflation
==========

The White House expects the US economy to cool in 2024 with 1.7% growth, below economists' forecast of 2.1%. President Biden's proposed budget for fiscal year 2025 assumes higher growth due to pro-growth effects of policies. The budget includes increased child tax credit, tax credit for homebuyers, higher corporate taxes, and a minimum tax rate of 25% for billionaires. Inflation is expected to average 2.9% in 2024, and unemployment is projected to rise to 4% this year and next. The administration expects borrowing costs to average 5.1% for three-month Treasury bills and 4.4% for 10-year notes in 2024. The US will pay $4.7 trillion in real net interest from 2025 to 2034, squeezing other programs in the federal budget. The White House projects annual fiscal deficits above $1.5 trillion over the next decade, with a deficit as a share of GDP averaging 4.6% from 2025 to 2034.



https://theedgemalaysia.com/node/704278