White House raises 2024 U.S. economic growth and inflation forecasts

The White House raised its forecasts for U.S. economic growth and inflation through 2024 while continuing to project large budget deficits in the coming years. The Office of Management and Budget (OMB) now expects U.S. GDP to grow 1.9% year-on-year in the fourth quarter. That's up from its March forecast of 1.3%. CPI was also raised to 3.1% from its previous forecast of 2.5%. The Biden administration released the forecasts Friday in the OMB's so-called mid-term budget review. The deficit for the current fiscal year is expected to be $1.87 trillion, not much different from the $1.86 trillion projected in March. The deficit for fiscal 2025 is expected to be $1.88 trillion, up from the $1.78 trillion projected in March. The budget deficit as a percentage of GDP is 6.6% in fiscal 2024, which ends in September, and will fall to 6.3% next year. At that ratio, the deficit ratio will continue to be among the highest in U.S. history, excluding wars, financial crises and the coronavirus pandemic. Economists worry that if lawmakers fail to control debt growth, the economy will be damaged. The nonpartisan Congressional Budget Office (CBO) predicted last month that the U.S. deficit will reach $1.92 trillion in fiscal 2024. (Global Market Report)