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Nov 12, 2019

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Marketplace Morning Report

Despite a strong economy, the federal deficit continues to grow

Ben Bradford Jun 13, 2019
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An October 18, 2018 photo shows the seal of the US Treasury in Washington, DC.
MANDEL NGAN/AFP/Getty Images

A growing economy typically means shrinking deficits, but a new report from the U.S. Treasury Department shows the government spent $740 billion more than it took in from October to May — almost the entire federal deficit of the previous budget year.

Last month’s deficit looks even worse than it would due to a timing quirk: June 1 fell on a Saturday, so more benefits were paid in May. But experts say tax cuts in 2017 and increased spending have contributed to an unprecedented fiscal gap over the past eight months.

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