White House cuts GDP, deficit forecasts.

The Obama administration has trimmed its economic outlook, predicting that GDP will grow 2% this year vs a prior forecast of 2.3%, and 3.1% in 2014 vs 3.2%. The White House's Office of Management & Budget cited "serious headwinds" for the reduced estimate, such as sequestration, European austerity and China's slowdown. The government also cut its deficit prediction to $759B, or 4.7% of GDP, the lowest in five years. The forecast in April was $973B.