Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
President Biden’s third budget proposal released Thursday touts nearly USD3 trillion in new deficit reduction over the next ten years on tax increases, but still manages to average a 5.2% deficit to GDP thru 2033, above the prepandemic path.
The White House budget assumes no recession, a rise in unemployment to 4.3% this year, before peaking at 4.6% next year. The President's budget sees CPI inflation easing to 4.3% this year and 2.4% in 2024, but sees inflation stuck at 2.3% with the Fed failing to reach its 2% target through 2033.
(See: MNI INTERVIEW: Biden Investments Shield Jobs From Fed-Sojourner)
Even as the budget’s economic assumptions anticipate an increase in real interest rates over the coming decade, real interest payments are in line with the historical average, White House officials stressed on a call with reporters. Biden's budget is expected to be dead on arrival on Capitol Hill and Republicans are expected to offer a starkly different budget sometime this spring.
Source: Office and Management and Budget
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.