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flag U.S. budget outlook improves in 2025 due to higher taxes and lower spending, but inflation remains high.

flag The U.S. federal budget outlook has improved, with projected deficits narrowing due to stronger-than-expected revenues and spending controls. flag However, inflation is expected to rise in the coming months, driven by persistent price pressures in services and housing, according to new government economic projections released on December 17, 2025.

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