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Economic Commentary

What Fiscal Surplus?

The United States’ economic performance during the last two years has been spectacular. Inflation remained quiescent despite rapid output growth and plunging unemployment. Asset values were buoyed—Asian economic troubles notwithstanding— by upbeat earnings expectations, confidence in continued low inflation, and stability in the domestic economic environment. Strong income growth and increased capital gains realizations raised federal revenues beyond the levels projected earlier. Now, the Congressional Budget Office projects annual federal surpluses through the first decade of the new millennium.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Gokhale, Jagadeesh. 1998. “What Fiscal Surplus?” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1998.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International