US Treasury Dept counselor Lavorgna notes expect deficit share to GDP ratio to come down further in 2026, CNBC reports

US Treasury Dept counselor Lavorgna notes expect deficit share to GDP ratio to come down further in 2026, CNBC reports.

The expectation for the US deficit share of GDP to decline further by 2026 indicates a potential improvement in fiscal health, which could be seen as supportive for growth. If this trend materializes, it might also influence market sentiment towards risk assets, particularly as it suggests a long-term commitment to deficit reduction. Traders should consider the implications for future fiscal policies and interest rates as the government seeks to balance growth with fiscal responsibility.