- The federal budget deficit is projected to be $2.3 trillion in fiscal 2021, the Congressional Budget Office said.
- That’s smaller than 2020 shortfall of $3.13 trillion but larger than anything the nation had seen prior to the Covid-19 pandemic.
- Federal debt will swell to $35.3 trillion in 2031, it said, the largest debt-to-GDP ratio in U.S. history. Source CNBC
The United States and Germany reached an agreement on Wednesday on Russia’s Nord Stream 2 gas pipeline, ending a longstanding dispute between the allies, the Washington Post reported. Source Reuters
Turkish annual inflation has jumped to a two-year high of 17.53 percent in June, exceeding a forecast of 17 percent and continuing an extended rise after a brief dip, potentially delaying any interest rate cuts to later in the year. Source AL Jazeera
The federal government will be swimming in $3 trillion of red ink by the end of fiscal 2021, according to a Congressional Budget Office estimate released Thursday that swelled 33% from the last forecast.
As a result of multiple stimulus measures aimed at combating the pandemic’s economic impact, Congress will run a budgetary shortfall this year equivalent to 13.4% of GDP, the second-largest level since 1945 and exceeded only by the 2020 spending. Source CNBC
