I will also offer some thoughts on the recent actions undertaken by the Federal Reserve and on the implications of our nation’s fiscal and monetary policy choices for the global economy. 1 The challenge of achieving fiscal sustainability in the United States Charting a sensible course for the federal budget is an essential but formidable task for U.S. policymakers.
Since the onset of the recent recession and financial crisis, the federal budget deficit has soared as the weak economy has depressed revenues and pushed up expenditures and as necessary policy actions have been taken to help ease the recession and shore up the financial system.