国际英语新闻:U.S. federal budget deficit swells amid fiscal uncertainties

Fears are growing that the political gridlock on fiscal policy would weigh on economy and massive fiscal tightening measures would throw the country into recession.

Mark Zandi, a chief economist of Moody's Analytics, said the threat posed by the fiscal problems is "intensifying" at a time when the U.S. economy continues to "muddle along."

He said the Treasury debt ceiling would need to be raised again in February 2013, and the issue will be compounded by the "fiscal cliff" early next year when broad tax increases and deep spending cuts will take effect unless the Congress reaches an agreement.

"Scaling back the fiscal cliff is necessary to avoid recession, " he said. "The most important and contentious decisions are what to do about the expiring Bush-era cuts and the automatic spending cuts in the defense and nondefense discretionary budgets required under the sequestration agreement to raise the debt ceiling last summer."

Zandi predicted none of the issues will be addressed before the presidential election and even after it. "There will be plenty of political brinkmanship and the economy is sure to suffer, especially early next year," he noted.

Erskine Bowles, who served as chief of staff for former U.S. President Bill Clinton, wrote an article in the Washington Post, saying that real deficit reduction - cutting the deficit by at least 4 trillion dollars over the next decade to stabilize the debt and get it on a downward path as a percentage of gross domestic product - won't happen without sweeping tax reform.

"Over the next four years, the United States will need to do much more to address its long-term debt than either party has been willing to do. This fall, the American people deserve a serious national debate about our debt, not easy promises," he noted.