Update on US public finances

As the pandemic episode comes to a close, the economic policies adopted during the crisis are being dropped. On the monetary front, the policy shift by the Fed has been under way for six months now and it continues to gather momentum. On the fiscal side, Covid-related spending has stopped, and the federal budget deficit is now even lower than in 2019. However, US federal debt is higher by 20 points of GDP and tax revenue is unlikely to remain as brisk as in recent months since GD...