|

US President's Budget FY 2018: A new foundation for American greatness

Office of Management and Budget released its budget for the fiscal year 2018 titled: "A New Foundation for American Greatness"

Key highlights:

  • The Budget Blueprint outlined a plan to reduce non-defense discretionary spending by $54 billion in 2018. As part of the plan to achieve a balanced budget by 2027
  • The Budget includes $35 billion in savings to be realized through reforms that prevent bailouts and reverse burdensome regulations that hinder financial innovation and reduce access to credit for hardworking American families
  • The President’s Budget includes $639 billion of discretionary budget authority for the Department of Defense (DOD), a $52 billion increase above the 2017 annualized continuing resolution (CR) level
  • The President’s Budget includes $44.1 billion for the Department of Homeland Security (DHS) and $27.7 billion for the Department of Justice (DOJ) for law enforcement, public safety and immigration inforcement programs and activities
  • The President’s Budget secures the borders of the United States by investing $2.6 billion in high-priority tactical infrastructure and border security technology
  • The Budget reflects the proposal to shift the air traffic control function to an independent, non-governmental organization beginning in 2021, with a cap reduction in discretionary spending of $72.8 billion, and reduction in aviation excise taxes of $115.6 billion
  • The Budget includes $200 billion in outlays related to the infrastructure initiative

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

More from Eren Sengezer
Share:

Editor's Picks

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY falls toward 153.00 as markets project aggressive BoJ tightening

USD/JPY remains under bearish pressure after falling sharply earlier in the week and closes in on 153.00 on Wednesday. A strong Reuters Tankan business survey adds to the case for continued BoJ policy normalisation and supports the Japanese Yen. This, along with a broadly weaker US Dollar, keeps the pair close to a nearly seven-month low set on Tuesday.

Gold buyers struggle near $4,400 amid Fed rate hike bets, rising Oil prices
Gold (XAU/USD) rebounds on Wednesday, snapping a three-day losing streak, but struggles to extend its recovery. Tit-for-tat attacks between the United States (US) and Iran push Oil prices higher, while a rebound in the US Dollar (USD) keeps the metal below the $4,400 mark after touching a one-week low near $4,341 earlier in the day.
Pi Network's rebound holds as momentum improves

Pi Network (PI) extends its recovery on Wednesday, trading above $0.098 after finding support around the 50-day Exponential Moving Average earlier this week. The rebound comes as the Pi Core Team highlights the importance of strengthening its developer ecosystem to expand application-level utility across the network.

Oil, Apple and JPY in focus
Oil prices are rising on Wednesday as tit-for-tat strikes between Iran and the US threaten oil supplies as the two sides battle for control of the Strait of Hormuz. Stock futures have switched their attention from a strong earnings season to the challenges ahead, including a 10-year Treasury yield that is hovering close to the 4.8% level.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.