According to the Congressional Budget Office baseline, which does not assume a single year of recession and already counts with record tax revenues, the 2025 primary deficit will reach $851 billion, while net interest outlays will rise to $951 billion.
Tax revenues are cyclical, and expenditures consolidate and rise faster than revenues because the administration never gets enough.
When the economy soars, governments spend more, and when the economy weakens, they spend even more, making deficit spending a burden on the economy that leads to discontent in recessions and expansion periods.
Small businesses and families are suffering from higher rates because the government has created inflation and driven deficits to unsustainable levels, and the government demands more tax revenues.
According to Yellen, the government will not compromise on spending, and you will pay with inflation and higher taxes.
Government spending has already reached $3.82 trillion from January to May, a 6% increase over the same period in 2023, according to the Treasury's Fiscal Data website.
Considering that Yellen and the Biden administration are unwilling to even moderate the insane government spending trend, the Federal Reserve finds itself in the position of trying to curb the cost of debt by slowing the path of balance sheet normalization.
https://mises.org/mises-wire/yellen-wants-price-inflation-rise-so-feds-can-keep-spending
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