U.S. Budget Deficit Up Sharply In October; Greenspan Warns Trump, GOP

This is source I found from another site, main source you can find in last paragraph

It was another light news day in the U.S. on Monday. Late in the session, the federal government released a report that showed it began its new budget year with an October deficit of $63.2 billion, up sharply from a year ago. This was larger than the $58.2 billion forecast. The size of the deficit may have been a surprise, but the deficit wasn’t since the government has run deficits in October for each of the past 64 years.

The Treasury Department reported that the October deficit was 37.9 percent higher than the $45.8 billion deficit recorded in October 2016.

The report went on to say that both government receipts and spending were up for the month, with receipts climbing 14.3 percent to $235.3 billion, a record for the month of October. The larger spending figure was up a sizable 11.6 percent to $298.6 billion.

The Congressional Budget Office estimated in June that the deficit for the current budget year, which runs from October 1 to September 30, would fall to $563 billion. However, that estimate did not include money for a tax cut being pushed by the Trump Administration and GOP lawmakers.

In other news, former Federal Reserve Chief and Republican economic adviser warned President Trump and Congress that now isn’t the time for big tax cuts.

Greenspan said, “Economically, it’s a mistake to deal with sharp reductions in taxes now.” He further added, “We are premature on fiscal stimulus, whether its tax cuts or expenditure increases. We’ve got to get the debt stabilized before we can even think of those terms.”

U.S. Equity Markets

U.S. stocks closed a little better on Monday on takeover news, but a decline in General Electric shares, coupled with concerns over a possible delay in tax reform, limited gains in the major indexes.

The S&P 500 Index was supported by a 20 percent rise in Mattel. The toymaker rose after Hasbro approached it to discuss a possible takeover. GE was the worst performing stock in the index. It fell 7.2 percent after the company issued weaker-than-expected guidance for 2018. It also slashed its dividend by 50 percent and announced it will focus on its health care, aviation and energy businesses moving forward.

The Dow Jones Industrial Average was up with Boeing contributing the most to the gains while GE led decliners. The NASDAQ Composite was supported by strength in Facebook, Amazon and Netflix. Gains were limited by weakness in Apple and biotech stocks.


Gold prices rose on Monday as the dollar moved mostly sideways and uncertainty over a U.S. tax reform plan continued to weigh on investor appetite for risky assets. Gold prices also remained stuck in a narrow range, however, as investors awaited more clues on the path of U.S. interest rates.

Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil settled nearly unchanged on Monday despite a bullish report from OPEC.

The oil cartel raised its forecast on Monday for demand for its oil in 2018 and said its deal with other producers to cut production was trimming excess oil in storage, potentially pushing the global market into a larger deficit next year.

OPEC also said it now expects oil demand to rise by 1.51 billion bpd next year, up 130,000 bpd from previously, to 98.45 bpd.

Another forecast showed a lower estimate of supply growth from non-OPEC countries next year. OPEC now sees a rise of 870,000 bpd, down 70,000 bpd from the previous forecast.

This article was originally posted on FX Empire

This is source I found from another site, main source you can find in last paragraph

Source : https://finance.yahoo.com/news/u-budget-deficit-sharply-october-230026661.html



U.S. Budget Deficit Up Sharply in October; Greenspan Warns Trump, GOP
US budget deficit up sharply to $63.2 billion in October
Trade deficit on course for surplus
Senate moves ahead on GOP budget that's key to taxes
Another Analysis Finds GOP Tax Plan Would Balloon Deficits
Clout Street
Most Americans Think GOP Tax Reform Plan Favors The Wealthy
US budget deficit up sharply to $63.2 billion in October