The US federal government deficit

According to US Treasury data released on Thursday, the US federal government budget deficit reached $1tn. This number is very likely to keep climbing up in my opinion. In his previous election campaign, the current US president, Donald Trump, said that the US budget deficit could go down under his tax cut policy, because although the tax cut will reduce the tax income from individual parties, the economic growth boosted by the policy will not only compensate the losses but also increase the overall tax income. So far, his claim seems to be false that although the economic growth during the Trump presidency is comparatively strong, the economic growth boosted by the expansionary fiscal policy fails to reduce the budget deficit.

Now, some economists predict an economic slowdown ahead of the US economy as well as the global economy. With the 2020 presidential election ahead, Donald Trump is under pressure to keep the economy growing. This means that the expansionary fiscal policy. Furthermore, the ongoing trade war between the US and China has also added some downward pressure on the US economy, this makes the economic stimulus more needed. The US president has pressured the Federal Reserve chairman to lower the base rate and choose expansionary monetary policy.

Under such circumstance, there is not much hope that the US federal government budget deficit will fall anytime soon.