Tags: deficit | budget | plan | reduction

CNBC Survey: Deficit Worry Wanes on Wall Street

By    |   Thursday, 01 August 2013 08:16 AM

Financial experts have grown less concerned about the budget deficit in recent months, according to a new CNBC survey.

The poll of 50 top money managers, investment strategists and economists shows their worry about the deficit has reached a seven-month low. For the first time, a majority of respondents say cutting the gap is no longer urgent.

Only 40 percent of respondents believe the government should immediately implement a deficit reduction plan, down from 80 percent in January.

Editor's Note:
The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

A 52 percent majority believes the country has at least two years to come up with a deficit reduction plan, up from 16 percent in January. Meanwhile, 8 percent of the respondents see no need for such a plan.

Worries may have eased due to the fact that the deficit has shrunk to 3.96 percent of GDP from 10.47 percent in the third quarter of 2010, according to CNBC.

The deficit totaled $1.1 trillion in fiscal 2012, which ended last Sept. 30. The White House budget office forecasts a deficit of $759 billion for this fiscal year. That would represent a 31 percent drop from last year.

Lower government spending, particularly after the sequester began March 1, and this year's tax increases have helped erase the red ink.

The contracting deficit helped push Moody's Investor Services to affirm the nation's triple-A credit rating and upgrade the outlook to stable from negative earlier this month.

"The U.S. budget deficits have been declining and are expected to continue to decline over the next few years," Steven Hess, senior vice president of Moody's sovereign risk group, said in a statement.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

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Economy
Financial experts have grown less concerned about the budget deficit in recent months, according to a new CNBC survey.
deficit,budget,plan,reduction
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2013-16-01
Thursday, 01 August 2013 08:16 AM
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