 ... Deficit cut same unable to cured fit deficit financial analysts say they are pleased with congressional moves to dreamed next years fed level budget deficit but believe the action will thar little to help improve pie u.s. trade deficit or through with the economy the house of representatives is expected to four tomorrow to approve a trillion dollar budget blueprint for the coming fiscal year that it reduces the deficit by thanthi eight billion dole adds similarly the senate budget committee has approved a plan vat to cut federal red ink by about thirtyseventh billion dollars next epoch in terms of the economic thirtyseventh thirty eight p than dollars is infinite symbol so coats of this magnitude will have little impact on the economic and threat deficit said stanley colon death it touched a gross federal budget policy analyst at best it will have a small positive a fed colon the said in an interview federal represent reserve board chairman paul walker has repeatedly told congress that cutting federal red ink odd co all long way to help reduce the massive fret deficit and also help ease some of the downward pressure on the value of is dollar t was our meant has attempted to of amity the fed aim balance by driving down the value of the dollar but false kar has warned that a for the fall in the dollars value is froth with danger such a disk decline he has said could befall the inflation inflation as imported courts become more expensive and chase away foreign capital needed to finance the federal budget deficit in addition in february you was officials meeting with other major industrialized nations paris agreed that the value of the dollars at dropped enough and that owed o that world exchange rates should be stable are dug around current levels as part of that agreement chip pan am was germany agree to take steps to stimulate that economies and the united states agree to cut its budget deficient the alter native is to driving down the dollar any further as are way to deal with a threat deficit fall cuts sage recently he still reduce the u.s. consumption particularly federal spending t so don't deal with deposit deficit every thing as you do is going to be counterproductive walker said in a free some testimony before the senate bandied committee walker also said he owed preferred to further tighten the governments pursue strings ban have the fed tighten the credit supply if action was needed to fight inflationary pressures or two as sure be continued flow of foreign capital it to the vote that it states ... Finally say that fed tightening now could chocos the current two modest economic expansion and our rattan are cessation scamper financial services economist john sell zia stress that any deficit reduction was better than none but he said the size of dick cuts under consideration were not enough to give federal reserve board the flexibility if it needs to steals economy or to keep the value of the dollars from plunging further involve exchange markets pay is no doubt that some deficit reduction helps if but if your objective is to stabilize the dollar and preserve the fads flexibility to conduct monitor policy then the answer is it is not enough seal we are told to reuter's the you were straight deficit has become one of the dog comments most fed friend power system problem thin plant in nineteen it six deficit was harder in sixty nine point it billion dollars and there is as yet a little indication that this year sickle will be any door grow at been a station officials have predicted it will drop pie about a witty to thirty billion dollars by years and in past a wall kar has choked that he never lost lithe voting whether congress would cut ... Too much fat with the federal budget on the yadavs hand he also met is clear he is not attach to the gradually declining deficit ceilings fat forty ninety eight six nineteen ninety one period by last years gram wrote man balanced budget law was in new laws set a ceiling of hundred and eight billion dollars for next years federal deficit of both the house and san the budget committees have conceded that there budge it plans to fall short of t deficit reduction goal by about ratified billion dole for political reasons thirty five to forty be gen dollars is about most war going to get out of congress at the present time set touches roa's calendar to do something more than that would pay axe to ordinary remarkable and ferry very difficult call render said the free health paying ge for congress was to end up short of deficit reduction goals set by spur dependence to one extent this has become minimal acceptable reduction level he explained anything less than that will now look like a failure to a wall street deposit plan now under debate the on the house floor would lower an estimated one seventy one billion dollar decisive for the year beginning on october want to about one third to three billion dollars by cutting defense and domestic throw down sped thirty eight million dollars from anticipate its spending levels for thin next year the senate budget committee has called for a deficit of nearly one thirty four billion dollars with abort it teen point five billion dollars in new taxes on about the same or more to spending cuts