Podcasts Business Investing Notes on the Week Ahead The Investment Implications of a Falling Budget Deficit

The Investment Implications of a Falling Budget Deficit

Published: May 16, 2022, 1:20 p.m.

Last Wednesday, the Treasury Department announced a record monthly budget surplus for April of $308.2 billion.\xa0 The report elicited no noticeable market reaction, as investors continued to fret about high inflation today and slowing growth in the months ahead.\xa0 However, a Federal Reserve recognition of the economic implications of a fast-falling budget deficit could hold the key to a recovery in recently battered stock and bond markets.