The Real Reason to Worry About the Huge US Deficit: Bill Dudley (Correct)

The US government’s finances keep looking worse. The latest Congressional Budget Office projections suggest that it will need to borrow an added $400 billion this year to cover its budget deficit — and trillions more over the next decade.

Investors have plenty of legitimate reasons to worry about this trend. The immediate effect on money markets isn’t one of them.

The CBO’s forecasts are truly dire. It has raised its estimate of the fiscal 2024 deficit to $1.9 trillion from $1.5 trillion, citing the costs of military assistance to Israel and Ukraine, student loan forgiveness and higher interest rates. It ...