US Budget Deficit Projected to Reach 120% GDP by 2036

The federal budget deficit is projected to surge to 120% of GDP by 2036 and 175% by 2046, driven by tax cuts and increased spending. Addressing this requires both tax increases and benefit reductions. This long-term fiscal deterioration could weaken the US dollar as debt sustainability concerns mount. Traders should monitor USD pairs for potential weakness as fiscal policy debates intensify and debt concerns weigh on dollar strength.