>After COVID-19, the US’s financial standing has improved faster than in most other advanced economies thanks to the speed of the country’s economic recovery. A

>After COVID-19, the US’s financial standing has improved faster than in most other advanced economies thanks to the speed of the country’s economic recovery. According to CBO’s latest forecast, the deficit fell by $1.7 trillion between fiscal years 2021 and 2022, and this is the fastest deficit reduction in history. The deficit fell by 1.7 trillion because of the expiration of COVID stimulus money. Then it started rising again. >As the figure shows, the US deficits were higher during the pandemic. CBO’s latest budget projections show that deficits have fallen to 4 percent of GDP and will remain around that level, which is well below the pandemic levels and even below the Administration’s estimates for the FY2023 budget. The CBO projects budget deficits to explode to 8.5% of GDP by 2054: https://www.cbo.gov/publication/59711 https://www.cbo.gov/publication/59711 This is an optimistic case. It assumes no new wars, recessions, tax cuts, social programs, and interest rates never climbing above 4%. I just checked, and the 10Y treasury is at 4.681%.