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By Arit John and Mark Niquette

February 11, 2018 at 5:06 PM UTC

This article is for subscribers only.

The U.S. will post a larger budget deficit this year and could see a “spike” in interest rates as a result, but lower deficits are possible over time based on sustained economic growth from Donald Trump’s tax cuts, said Budget Director Mick Mulvaney.

Mulvaney spoke on “Fox News Sunday,” a day before the White House is expected to release 2019 spending proposals -- and after weeks in which financial markets have been spooked by prospects for rising inflation tied to higher deficits and lower taxes.