Obama trims US deficit outlook

A stabilising US financial sector has freed President Barack Obama to trim 2009 budget deficit projections. The White House budget office will lower its deficit forecast next week for the current fiscal year to $1.58 trillion (£95bn) from $1.84 trillion after removing $250bn set aside for bank bailouts, officials said. The decision shows the administration has enough confidence in the financial sector's strength to avoid asking Congress for further funds, although analysts pointed out the deficit was still running at a historic high.