The USA budget deficit continues to grow

The two rate hike decision by the FED in the year 2017 despite the recent economic crisis has created an extreme level of uncertainty in the global market. The U.S dollar index tumbled hard from its 14 years record high after the market absorbed the rumors. The current reduction of 6.3 % from the budgets of 2011 clearly demonstrated the current budget deficit in the U.S economy. Though most of the leading economist suggested that the global recession ended in 2009, but the recent performance of the U.S economy clearly demonstrates a sluggish recovery phase of the U.S economy. Though the U.S current budget deficit is adjusted from 2011 proposed plan some of the leading economists are thinking that further adjustment will be required in near future due to the global uncertainty. The current consider sentiment of the U.S economy is also very negative due to weak data release of the average hourly income. The retail sales data also came out negative for the U.S economy which clearly exhibits the struggling phase of the U.S citizen. If the FED officials come up with a third rate hike decision in the year 2017, then this will create a long lasting negative impact for the green bucks. Most importantly it will push the U.S dollar index towards the multi-year low.

According to statistics, the U.S has the largest debt burden in the global economy. Currently, the U.S debt-to-GDP ratio is 101% which is slightly better than the previous year data. But if we consider the bigger picture than the current debt is touching $18 trillion in the finical market. According to leading economist, the leading officials in the U.S government should not focus on rate hike decision rather they should concentrate on their labor force market. Compared to the performance all economic sectors, this is the labor force market has the best chance to mitigate the current weak performance of the U.S economy. However, if the FED officials come up with the third rate hike program then collecting revenues and tax from the consumers will be extremely hard. Either the government will have to create external pressure on its people or the consumers have to pay a heavy cost for this budget deficit problem.
See also:
Weekly market overview May 13 - 17.
Weekly market overview May 13 - 17.
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