Washington (AP) — President Joe Biden will highlight a deficit reduction in his statement at the White House on Wednesday, noting that the government will repay government bonds for the first time in six years this quarter.
Biden emphasizes how strong Job profit A White House official who previewed the speech on condition of anonymity said total revenues increased, leading to additional tax revenues that improved the government’s balance sheet.
The Treasury predicts that the budget deficit will decrease by $ 1.5 trillion this year, in addition to the quarterly cuts in government bonds. This decline represents an improvement over initial forecasts, with an annual deficit of less than $ 1.3 trillion.
Democratic President puts a new focus on reducing deficits Midterm electionsAdministrative authorities $ 1.9 trillion in coronavirus bailout Approved in 2021 has already been rewarded in the form of faster growth that facilitates the stabilization of government finances.
Deficit reduction also matches priority Senator Joe Manchin of West VirginiaMajor democratic votes in the evenly divided Senate Blocked Biden’s passage of national and environmental agendas During December. The reduction is also Rising interest rates In the US Treasury note, Inflation running at the peak of 40 years And the Federal Reserve’s efforts to reduce price pressure.
As the Democratic Party seeks to defend parliamentary rule, it is unclear whether greater financial responsibility can contribute politically to Biden. His two recent democratic predecessors, Bill Clinton and Barack Obama, have also reduced their budget deficits. Tax cut..
Still, Biden wants to draw a sharp contrast to his former President Donald Trump. Beat in 2020.. Trump promised to withdraw government bonds in a number of promises, but he couldn’t do so in any fiscal quarter of his presidency. Biden is repeatedly aiming to break that promise.
At the unveiling ceremony His budget plan In March, Biden said his administration would “reduce Trump’s deficit and restore our finances to order” after the “financial scandal” of the Republican predecessor.
One of the challenges for Biden is that voters rarely pay off to significantly curb the increase in deficits and reduce deficits. Voters may discuss the idea of reducing deficits with pollsters, but health care, income, and inflation often come to mind when throwing ballots.
Norman Ornstein, an honorary scholar at the Conservative American Enterprise Institute, said deficits are often “abstract” to voters.Recent low interest rates have also curbed potential economic resistance from higher deficits, which are rising as follows: COVID-19 Pandemic Apart from that, the 2008 financial crisis will help the economy recover.
“They are likely to react to what’s in the wheelhouse and what they believe will have a more direct impact on their lives,” Ornstein said. The deficit is “a step has been removed for most voters and we have experienced a period of great deficits and debt. It did not directly ruin people’s lives.”