Report: Federal budget deficit falls to $486 billion

WASHINGTON — A new report says the federal government’s budget deficit has fallen to $486 billion, the smallest pool of red ink of President Barack Obama’s six-year span in office.

The Congressional Budget Office estimate shows better results than earlier projections by both CBO and the White House budget Office.

It comes as Washington’s warriors have mostly paused in their wrangling over the deficit in the run-up to the mid-term elections next month.

Obama inherited a trillion-dollar-plus deficit after the 2008 financial crisis but the deficit has fallen in recent years as the economy has recovered.

Still, budget hawks warn that the retirement of the Baby Boom generation will balloon deficits in coming years unless Washington can bridge its divides and curb the growth of expensive programs like Medicare.

ANDREW TAYLOR, Associated Press