US February federal budget deficit -296.0B vs -299.0B expected

Deficits and spending all work in cycles. There was something of a blow-off top in spending during the pandemic and now the cycle is slowly turning.

I wouldn’t count on politicians rushing towards austerity but it will come slowly, then quickly as the bills mount. The US has a major entitlement problem that should be fixed in the next Presidential cycle. If not, the next four years after that are going to be a bloodbath.

The thing is, most major countries appear to be on the same path. The question is whether it will be fixed with spending restraint or higher taxes.

This article was written by Adam Button at www.forexlive.com.