Re: The Story to Watch Today

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Here‘s the new CBO report on the president’s budget. It estimates a $1.8 trillion deficit in 2009, lowering to $1.4 trillion in 2010 and declining to 4% of GDP by 2012, though overall it expects $4.8 trillion in deficits 2010-2019 — in other words remaining between 4% and 6% of GDP for the decade.

The percentage of GDP number here is important because President Obama had aimed to slash the deficit to $533 billion or 3% of GDP by 2013. We’re still reading through the 56-page report and White house Press Secretary Robert Gibbs is expected to brief soon — so I’m sure there will be more to come.