It is stated that the budget deficit of California, one of the richest and largest states in the USA, may reach a record level of 68 billion dollars in the next fiscal year. Wall StreetJournal (WSJ).
The publication emphasizes that the reason for this deficit is the decline in state revenues, including the sharp decline in tax revenues. California could miss out on nearly $58 billion in fiscal year 2024-2025, and the budget for that period is planned to be $310 billion.
Such a situation could force the state government to take funds from the “rainy day fund” to cover the deficit, the publication notes.
Former US Treasury Secretary Janet Yellen statedHe commented on Moody’s recent downgrade of the US economy, saying the Treasury market is safe and liquid and the US economy is strong.
Yellen acknowledged that if long-term interest rates continue to rise, it will pose a problem for debt sustainability. But the Biden Administration is fully committed to a reliable and sustainable fiscal path.
Previously IMF economists guess division of the world into two trading blocs.