Strong U.S. budget will strengthen the dollar

Strong U.S. budget will strengthen the dollar

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In the currency market on Wednesday , March 5 , there is serenity . Dollar has enjoyed moderate demand and by 12:30 MSK reached 1,373 U.S. dollars. Market participants’ attention focused on the United States, where President Barack Obama presented a budget bill for 2015 fiscal year , reports Reuters. The budget is 3.9 trillion dollars include funding priorities called modernization of infrastructure, education and other social programs.

Obama previously called digit budget deficit of $ 564 billion , or 3.1 % of projected U.S. GDP . In the next decade, the deficit of the state budget is projected to be between 400 to 500 billion dollars, and its ratio to GDP will decline to 1.6% by 2024 .

The budget for the new fiscal year , which begins October 1 , 2014 . , Pledged investment in infrastructure , training and early childhood education. They also provide a tax cut for working Americans , while closure of certain tax loopholes , resorted to the rich population. “The budget I submitted to Congress , describes how we intend to implement a responsible and balanced agenda. This detailed plan to create jobs with decent wages , and expanding opportunities for all Americans ,” – said the American president during a visit to an elementary school Powell in Washington. ” Because the deficit is reduced by half , it will allow us to meet our obligations to future generations, not vzvalivaya on their shoulders a mountain of debt ,” – said Obama .

U.S. President offers significantly strengthen the so-called tax credit on earned income (Earned Income Tax Credit, EITC), which will lead to a reduction in payroll taxes 13,500,000 Americans. Perpetual improvements to be introduced in the EITC, has already helped 1.4 million U.S. citizens and help another 16 million families with 30 million children get out of poverty .

Despite the optimism of Barack Obama , analysts believe that the draft budget law for the election year will almost certainly be rejected by the House of Representatives, where the majority are Republicans , and most likely will not be supported in its current form . Nevertheless, the fight legislators fulfills its mission – the budget deficit is reduced and , apparently , will continue to decline . This makes the dollar more stable currency that currently and regains market.

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