NEW YORK (Reuters) - A sweeping U.S. budget deal and lower interest rates will slice projected budget deficits nearly in half over the next 10 years, the nonpartisan Congressional Budget Office reported on Wednesday.
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ALEX MANZARA, VICE PRESIDENT, TJM FUTURES, CHICAGO
CHARLES LIEBERMAN, CHIEF INVESTMENT OFFICER, ADVISERS CAPITAL MANAGEMENT LLC, HASBROUCK HEIGHTS, NEW JERSEY
"I'm not inclined at this point to look at long-term forecasts of the U.S. budget deficit as written in stone, because the budget is clearly a policy issue that is being debated as we speak."
"We do know that with policy as it is today, the budget deficit is going to be fairly large for as far out as we can see. Congress has finally waken up to the realization that the budget deficit is out of control and therefore they must reduce it. Obviously that's been the contentious debate."
"A lot of things are being debated and that makes it really difficult to place any great emphasis on any particular number. The core concept is clear. that is that the U.S. must reduce its budget deficit."
GENNADIY GOLDBERG, FIXED INCOME ANALYST, 4CAST LTD, NEW YORK
"It is definitely a step in the right direction, but we have had some economic slowing so it remains to be seen whether the income side of the equation holds up as well. Whenever the budget deficit is a smaller percentage of GDP that is always a good thing.
"The CBO is fairly reliable on this front, so if they say the budget deficit is going to be smaller, I am tempted to believe them. Obviously, if things go for the worse, they might not be that accurate."