The US deficit and its impact on the economy

The US federal government is projected to have a budget deficit of $2 trillion for 2023, double the deficit from the previous year. This growing deficit raises concerns about the nation's high and rising debt-to-GDP ratio, which could become a major expense in the future. The widening gap between government spending and revenue has resulted in an increase in interest rates, signaling investors' concerns about the long-term economic outlook. While inflation remains relatively low, critics argue that the deficit is acting as a drag on the economy and affecting the bond market. However, the impact of the deficit and the need for fiscal conservatism is highly debated, complicated by political factors and the lack of a unified approach to address the deficit.