White House Budget Proposal Estimates FY25 Deficit Of $1.781T Vs $1.859T YoY, $1.694T In FY23; Estimates Cumulative FY25-2034 Deficit Of $16.297T Vs Latest CBO Baseline Deficit Forecast Of $20.016T; Estimates Deficit At 6.1% Of GDP In FY25 Vs 6.6% In FY24; Averages 4.6% Over FY25-2034 Decade
Portfolio Pulse from Benzinga Newsdesk
The White House's budget proposal for FY25 forecasts a deficit of $1.781 trillion, a slight decrease from the previous year's $1.859 trillion, and $1.694 trillion for FY23. Over the decade from FY25 to FY34, the cumulative deficit is estimated at $16.297 trillion, significantly lower than the CBO's forecast of $20.016 trillion. The deficit as a percentage of GDP is expected to be 6.1% in FY25, decreasing from 6.6% in FY24, with an average of 4.6% over the decade.
March 11, 2024 | 4:17 pm
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POSITIVE IMPACT
The budget proposal's lower deficit forecasts and improved 10-year outlook could positively influence investor sentiment towards the SPY ETF, reflecting optimism about the U.S. economy's fiscal health.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in U.S. fiscal policy and economic outlook. A lower-than-expected deficit and a positive long-term fiscal outlook as presented in the White House's budget proposal could lead to increased investor confidence in the U.S. economy's stability and growth prospects. This optimism may translate into positive momentum for SPY in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70