The CBO now says the federal deficit will narrow to $642B in the fiscal year ending in...

|By:, SA News Editor

The CBO now says the federal deficit will narrow to $642B in the fiscal year ending in September, a meaningful improvement from February's projection of $845B. The revision comes courtesy of higher tax receipts and dividend payments to the Treasury from Fannie and Freddie. The government can now skirt the federal borrowing limit until October or November. The CBO sees a deficit of 3.4% in FY14 and 2.1% in FY15, before the figure begins to rise anew on increased spending.