S&P does not expect a meaningful expansion or reduction of the US fiscal deficit

Ratings agency Standard & Poor’s (S&P), in its latest report on the US, says, “We don’t expect a meaningful expansion or reduction of the fiscal deficit over the forecast period”.

Key points

Expects slow and measured increases in the overnight rate as decisions remain data driven

Political divisions will continue to weigh on government’s ability to address public finance pressures in a timelier manner