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flag U.S. deficits shrink due to higher taxes and spending controls, but inflation remains high.

flag The U.S. budget outlook has improved, with projected deficits narrowing due to stronger tax revenues and spending controls, according to new government estimates. flag However, inflation is expected to remain elevated in the coming months, driven by persistent price pressures in services and housing. flag Policymakers are balancing fiscal consolidation with concerns over economic growth and inflation risks.

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