US deficit growing at record pace outside of a recession
NEW YORK (Scrap Register): The economic team at BNP Paribas is highlighting growing government debt in the U.S. Jean-Luc Proutat, head of OECD economies, noted that U.S. deficits are exploding as the government pushes massive economic stimulus measures.
While supporting the business climate, these actions have exploded the Federal deficit, which actually reports one of its biggest increases ever outside of a recession, he added.
One could say it is no big deal for the United States, thanks to the dollar’s international status.
Yet, the fiscal boost has its limits. In many respects, US policy consists of accelerating an engine that is already close to full speed.
Proutat’s comments come as U.S. 10-year yields trade near their highest levels in seven years.