U.S. Budget Deficit Falls Under $1 Trillion; Lowest Since 2008

by Bill Chappell

October 30, 2013 6:52 PM

The U.S. government ran a deficit of $680 billion in the financial year that ended last month — the first time since 2008 that the annual shortfall has been under $1 trillion. It represents a fall from $1.09 trillion in 2012, but as the AP reports, “It’s still the fifth-largest deficit of all time.”

The Treasury Department announced the news along with the White House budget office Wednesday.

“Under President Obama, the nation’s deficit has fallen for the past four years,” Treasury Secretary Lew said. “It is now less than half of what it was when the president took office.” Continue reading “U.S. Budget Deficit Falls Under $1 Trillion; Lowest Since 2008”

Treasury: New Debt Ceiling Fight Could Derail Economy

by Scott Neuman

October 03, 201311:09 AM

Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.

Alex Wong/Getty Images

The Treasury Department is issuing a warning of dire economic consequences that could rival the Great Recession if Congress is unable to agree on raising the debt ceiling and the nation defaults on its obligations.

Treasury’s report, “The Potential Macroeconomic Effect of Debt Ceiling Brinkmanship,” comes as Congress is still wrangling over a short-term spending bill to reverse the partial government shutdown that went into effect Tuesday.   Later this month, House Republicans and Senate Democrats will need to agree to raise the $16.7 trillion debt ceiling or face a possible default. Continue reading “Treasury: New Debt Ceiling Fight Could Derail Economy”