U.S. budget deficit falls to record low in 2022

The U.S. federal budget deficit has narrowed by a record amount in the fiscal year to date measurement, the U.S. Treasury Department said Wednesday.

That is a record $1.8 trillion narrowing.

In July alone, the deficit fell to $211 billion, down from $302 billion in the same month a year ago. The receipts for the first ten months of the 2022 fiscal year were $787 billion higher than the same period last year, while the outlays were down by $1 trillion. Tom Simons, economist at Jefferies and Co., said the U.S. had a strong fiscal position because tax receipts were significantly stronger than expected in April. Economic growth is hampered by the decline in government spending. The fiscal cliff has reduced gross domestic product by 3.8% over the past year, according to economists at The Hutchins Center on Fiscal and Monetary Policy. Market reaction: DJIA, SPX, U.S. stocks were sharply higher on Wednesday after a surprising cooling of consumer inflation in July.