Growing Deficit May Push up Inflation in US

Growing Deficit May Push up Inflation in US



Former US Federal Reserve Chairman Greenspan warned during an interview with CNBC that inflation, although rather still so far, is bound to climb as US budget deficit constantly grow, posting greater threat to the economy.To get more news about WikiFX, you can visit WikiFX news official website.
　　The following statistics shows how bad the budget deficit is in the US and supports Mr. Greenspans concern. Since President Trump has taken office, the budget deficit surged nearly 50% from US$665 billion in 2017 to US$ 984 billion last year, while market expect the federal financial deficit to approach US$1 trillion in 2019.
　　The ballooning deficit raises apprehension about the inflation outlook. Multiple factors, such as a faster pace of population aging, rising public heath care spending and falling tax income, have contributed to the growing deficit, which can directly lead to heavier debt burden.
　　According to the latest statistics from US Treasury, US debt totaled US$22.7 trillion and is still rising. Analysts worry that should bubble burst in the bond market or the government gets weighed down by the heavy debt, inflation can be pushed up by soaring prices of assets. For the moment, reducing debts and controlling deficit level seems to be the first priority for US government.